Arkham Intelligence eyes non-US market for new derivative crypto exchange

Arkham Intelligence, a well-known blockchain analytics company, has announced plans to open a new cryptocurrency derivatives exchange in November 2024. 

However, this platform will not be available to U.S. customers due to regulatory challenges in the U.S. Instead, the company will base its operations in the Dominican Republic, where it hopes to take advantage of tax breaks and business-friendly rules.

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are the primary regulators in the US addressing potential legal violations by crypto exchanges.

The SEC evaluates whether crypto tokens qualify as securities and takes legal action against exchanges that don’t comply. Meanwhile, the CFTC oversees cryptocurrencies like Bitcoin as commodities, enforcing trading regulations.

A new exchange aims to attract retail traders, positioning itself as a competitor to major platforms like Binance. As part of Arkham’s broader strategy, the company plans to relocate from its offices in New York and London to Punta Cana, Dominican Republic.

The company, which is backed by high-profile investors including Sam Altman from OpenAI and Binance Labs, aims to attract traders from around the world.

Arkham already has a large user base, with nearly 880,000 people using its blockchain analytics platform, and it hopes this will help kickstart the new exchange. The company has also been raising funds and working on its technology to ensure a smooth launch.

Arkham’s proposed DEX comes one year after it launched its token and introduced a new program called the Arkham API Pilot Program, which allows its community members to use their API.

The API gives advanced users a way to connect blockchain addresses with real-world identities, helping them gain deep insights. With this API, users can create custom searches using SQL, giving them access to Arkham’s labels, transaction records, and past balance information for addresses and entities.