Beyond trading: CoinW’s multifaceted approach to crypto adoption

CoinW’s sixth anniversary marks the beginning of a new growth phase for the cryptocurrency exchange, with ambitious plans for 2024 that include platform upgrades and expansion into new markets.

One of the leading crypto trading platforms, CoinW, is celebrating its sixth anniversary. It started in 2017, focusing on the Asia-Pacific region, but has steadily grown to 10 million users across 200 countries. In its latest AMA, Cointelegraph talked to Sonia Shaw, president of CoinW Global, about CoinW’s growth strategy, features for traders and institutional investors and her views on the industry.

CoinW Unveiled: AMA with Sonia Shaw https://t.co/SkJfxwMJ4D

— Cointelegraph (@Cointelegraph) December 20, 2023

Here are the key takeaways from the AMA:

On CoinW values

We started as a technology company focused on blockchain technology and remain committed to that focus. We have developed our own crypto wallets, custodians and cybersecurity services for our users, which have evolved into a cryptocurrency exchange with a stronger emphasis on retail users. Our second focus is the community, which we constantly listen to so that we can provide real value rather than just transactional tools.

One of our other priorities is to help people overcome the technology hurdles they face, especially in emerging markets where they don’t have as much access to education and resources. The educational part is missing in the industry today, even though many people want to get into Web3 but don’t know how. That’s why we make our products simple and easy to use. We’re also building blockchain centers in emerging markets to promote education.

For many people, centralized exchanges (CEXs) serve as their first point of contact with Web3. Our goal is to provide them with a seamless trading experience and easy access to Web3 without overcomplicated features. Our first-time users receive sign-up and deposit bonuses that allow them to trade with leverage and try out the exchange opportunities. For our sixth anniversary, until early January, we’re running giveaways, airdrops and various activities.

We offer spot and derivatives trading, catering to both novice and professional traders. The web version of CoinW boasts sophisticated trading features, ensuring ample liquidity, swift execution speed, and efficient order matching.

Especially for professional or institutional traders, liquidity is critical for seamless trade execution. We were early adopters of futures trading, having launched it in 2018, which has equipped us with valuable experience and insights into the technology and business requirements. Regardless of trade size, we prioritize a smooth and intuitive trading experience for every user. We focus on the top 100 most liquid coins rather than offering many altcoins with poor trading experiences. We work with external market makers to ensure deep order books, minimal slippage and our infrastructure to handle large trades.

On exchange’s security and compliance

Many cryptocurrency companies expand too quickly, making it difficult to manage various aspects, including internal administration, which can become quite chaotic. So, when it comes to rapid market conditions, they just collapse. That’s why we’re cautious about fund management and all transaction processes. To ensure proper internal administration, we maintain a very strict separation between user funds and our operational funds. We also implement a tiered storage system for our funds, utilizing cold, warm, and hot wallets for larger funds. The funds are consistently kept in cold wallets due to the constant threat of attacks faced by cryptocurrency exchanges.

We also prioritize robust cybersecurity protocols and people, especially those in charge of authorizing the funds. We also have to be very careful with Know Your Customer (KYC) and Know Your Transaction (KYT), with Anti-Money Laundering (AML) being one of our focuses. If we identify a blacklisted transaction associated with an address or wallet, we block it.

All the major exchanges are now working together to make sure that we don’t accept blacklisted addresses that get us into trouble so that illicit funds have nowhere to go. So our management — internal, cybersecurity, segregation of funds — has many layers of protocols that we have to run smoothly so that everyone and everything is safe.

We also actively educate our users on how to protect their funds, such as setting up two-factor authentication (2FA) and using only our verified channels to contact us so they don’t fall victim to scams.

To be compliant, we actively work with jurisdictions that are at the forefront of regulation and have clear and well-defined structures to follow. Currently, we are working closely with the UAE VARA office to ensure we comply with local laws to operate as a crypto business there. We also have the Canadian MSB and St. Vincent crypto exchange licenses. We have a compliance team in Dubai, as well as in Singapore and Hong Kong, to navigate with the regulators, understand what is a comfortable zone for them, and slowly incorporate crypto into their regulatory framework.

From an industry perspective, we see the involvement of institutional investors and forward-thinking governments, such as the UAE, that want to drive technological innovation and are open to working with Web3 companies. On the other hand, other governments may prioritize consumer protection, which might hinder business expansion and innovations. However, these governments will need to adjust and strive for cooperation as well.

On institutional investors

We support many projects in CoinW, especially those with a strong community focus or those backed by institutional investors. For the latter, we prioritize projects focusing on technology, environmental sustainability and corporate responsibility. We act as an intermediary, connecting promising projects with excellent teams and our platform support to institutional investors. We’re not just a trading platform; we’re facing the whole web with an extensive network of developers, innovative projects, Web2 and Web3 users, and investors.

The introduction of ETFs removes regulatory barriers for institutional investors to enter the crypto market. This will open the door for large players to allocate a portion of their portfolios to crypto, transforming it from a retail-driven market to one with significant institutional liquidity. While some express concerns that this could lead to market manipulation and instability, similar to the concerns raised about gold ETFs, this is unlikely to occur due to the gradual nature of institutional adoption and the expectation of increased regulation and consumer protection. Thus, ETFs may shift the crypto market toward a more regulated, stable and less volatile market.

On the future of crypto and CoinW

We are now growing with blockchain technology. It’s gone from being a concept to real cases where we embrace and use it. But more adoption will be a real catalyst for the crypto industry, like hitting the one billion user mark when we don’t touch fiat and use crypto credit cards all the time. The real mass adoption will be a defining moment in the next bull run.

One of the cases is CoinW Card, our digital crypto debit card for our valued users worldwide, which can be easily applied for in the CoinW app. We’ll have the physical cards ready shortly as well.

2023 was a big year for us, and 2024 will stay on the same level. Users will see a new phase of CoinW, marked by our expanded presence at various crypto and fintech events and increased media exposure. We’ll also have upgrades in our trading experience and features.

Answers have been slightly edited and shortened for better readability and clarity. It doesn’t change the meaning of what’s being said.