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How to Start a Bitcoin Exchange Business

How to Start a Bitcoin Exchange Business

To start a Bitcoin Exchange Business your bitcoin exchange website script must have the following things.

Legal

The first question is whether you want to operate globally (e.g. Bitfinex or BitStamp) or focus on a national market (e.g. FlowBTC, meXBT). The next step is to seek legal counsel to help decide where you want to locate and how to incorporate/structure your business.You want to think about how you can limit your liability and exposure to litigation, as well as what regulatory/compliance requirements are in your jurisdiction, and what they are likely to be in ther near term. Merkle Tree offers a useful high-level global map of the regulatory landscape.

Banking

  • What sorts of banking relationships do I need and how can I secure them?
  • Note that banks can be heistant to provide services to digital currency exchanges.


Tech + Security

You or a partner need to build and maintain complex architecture that pairs orders, executes transactions, and manages deposits and withdrawals. Major componets are:

  • Matching engine
  • Risk management system
  • Accounting/audit system
  • Wallet management
  • Payment gateways


Security is understandably paramount. Some things to consider:

  • Sound internal security procedures among your team - see, e.g. CryptoCurrency Security Standard (CCSS)(incredibly important, and often overlooked)
  • Network and hardware security (secure data center, etc.)
  • KYC (Know Your Customer) + AML (Anti-Money Laundering) solutions
  • Two-Factor Authentication for users


Read More @ http://bitcoin.stackexchange.com/questions/18540/what-would-it-take-to-create-my-own-bitcoin-exchange

About Aaron Cody

Hi this is Aaron, Working as Technology advisor and blogger at bitdeal. Having 7+ years of deep understanding and experience in cryptocurrency trading industry. I keep on hunting the new trends and technologies that are related to crypto's and as well as blockchain Industry. Stay tuned with me at bitdeal, to get interesting updates regarding bitcoin, cryptocurrencies and other emerging blockchain technologies

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