Last summer, a new crypto currency exchange called Quoine was launched in Singapore. The exchange follows the model of exchanges such as Bitfinex whereby margin funding is provided by users. This system of margin funding creates a market for short term loans, which is very helpful for bitcoin investors. Quoine has recently announced a round of investment and a move to Japan. I think this is an exciting development for crypto currency investors and exchanges. My first impressions of Quoine are found below.
Use this link to open an account at Quoine, they have a refer a friend promotion.
Opening an account at Quoine is pretty straight forward. It seems in order to deposit or withdraw fiat currencies, the user needs to provide basic AML information. But it looks like otherwise, if a user wants to deal just with crypto deposits and withdrawals, they can remain anonymous. In terms of account level security, I see the exchange has 2 factor authentication and I set it up using Authy.
I’m not too sure about how Quoine deals with the security of account holder’s funds, but they claim to keep customer accounts “offline” according to some reports. Also, according to reports, the firm runs a check of all accounts at least once a day to monitor for any suspicious record that might be the result of manipulation. I’d feel better if they also used some crypto methods such as Merkle Tree audits.
Regarding the lending platform on Quoine, it looks more like Poloniex than Bitfinex because users can’t see the full order book, just the offers. The rates listed seem like they are in line with other exchanges, which makes me suspect the order book is real. I’m also not sure about margin requirements and exchange liquidity, which would help users better understand the risks of lending on the exchange. I can’t find the exchange rules. But I’ll transfer a little bitcoin to the platform to test it out anyway.
I’m not sure about how much API functionality Quoine has. Their API seems to just allow users to link their account to a 3rd party data display provider, rather than allow users to manage their account using an API. If this exchange wants to draw real liquidity, it needs to improve its API so that users outside of retail can use the exchange.
I think this exchange has some promising attributes, but they have a lot to improve on.
http://venturebeat.com/2016/06/24/quoine-raises-16-million-for-bitcoin-exchange-of-exchanges/
https://www.cryptocoinsnews.com/singaporean-bitcoin-exchange-quoine-raises-20-million-usd/
