The former CEO of Mt. Gox, Mark Karpeles, is set to open a new Europe-based cryptocurrency exchange, EllipX, this month. The platform is based in Poland and was established to provide enhanced transparency and a user-friendly interface while complying with the Markets in Crypto Assets (MiCA) regulation. Karpeles said this while speaking at the Korea Blockchain Week event in Seoul to establish transparency and stability in the current volatile market for the new currency.
In an interview about working at EllipX as the Chief technology officer, Karpeles said that the philosophy of EllipX was aimed at enhancing transparency in the transactions for cryptocurrency users, especially those who are green in the market. He noted that most cryptocurrency business CEOs hardly engage the customers, with Binance and Coinbase as some of the few exceptions. Karpeles emphasized that this disconnect is a growing problem in the industry. Consequently, EllipX plans to follow a structured business model by separating its trading and storage systems to create a more secure user environment.
Drawing Lessons from the Mt. Gox Collapse
When questioned about the events that led to the failure of Mt. Gox – previously one of the world’s largest Bitcoin trading platforms – Karpeles accepted that many things were learned from the failed trading venture in 2014. In what was deemed a hack, the exchange lost a considerable amount of Bitcoin, forcing it to shut down. Nonetheless, Mt Gox started customer repayment processes in 2024 using Kraken, showing positive signs towards mitigating the impact of the loss on the affected parties.
Karpeles elaborated that the company’s visualization will be a clone of the NYSE or NASDAQ. The platform is to have a customer view exposed to customers, a broker’s view exposed to brokers, and a crypto asset storage view to store assets. By so doing, he expects this structure to increase security and enable him to manage all the assets well.
Final Thoughts
Mark Karpeles’ decision to launch EllipX, a Europe-based cryptocurrency exchange, is a bold move, especially given his history as the former CEO of Mt. Gox, which collapsed in 2014 following a major hack. Karpeles’ emphasis on transparency and compliance with the Markets in Crypto Assets (MiCA) regulation shows that he has learned from the mistakes of Mt. Gox and is now focusing on restoring trust in the cryptocurrency space. His goal to offer a user-friendly platform, particularly for beginners, and to engage more directly with customers reflects an understanding of the industry’s need for improved transparency and communication, which is often lacking in other exchanges.
Drawing on the lessons from the Mt. Gox collapse, Karpeles appears committed to creating a more secure and stable environment with EllipX. His plan to separate trading and storage systems and mirror the structure of traditional financial exchanges like NYSE and NASDAQ suggests a serious effort to enhance security and operational clarity. By addressing security issues that plagued his former venture and focusing on a more transparent business model, Karpeles is positioning EllipX as a platform that could potentially regain the trust of investors and contribute to the evolution of more reliable cryptocurrency exchanges. However, given his past, skepticism may persist until the platform proves itself in practice.
Article Source: 36crypto
