DigiFinex is a centralized cryptocurrency exchange, founded in October 2017 by Ned Kee. The exchange is operated by DIGIFINEX LIMITED, registered in Seychelles, but headquartered in Singapore. The founder and CEO of DigiFinex has also established the ShenZhen Wala Network Technology Co. Ltd and held the “Director Development & Operations” position at Xunlei Networking Technologies. To kick-off the project, Ned Kee attracts talent from technology giants like Baidu, Tencent, and HP.
The exchange is registered with the ACRA Singapore (Accounting and Corporate Regulatory Authority), but it operates without approval or license from the local Monetary Authority. In its Terms and Conditions, DigiFinex highlights specifically the fact that it is an unregulated exchange and is not responsible for the funds, deposited there. As stated on the exchange’s website, user accounts made there are no bank accounts, and funds are not insured by the company or any government institution.
On its website, DigiFinex states multiple times that it takes the matter of security very seriously, and its management has a history of organizing and speaking at multiple security-related events and panels. To ensure its users’ protection, the exchange employs an HDM wallet technology, a combination of a single cold wallet and multiple hot wallets which allows for authorization multi-layer signature protection. The exchange also states that it has taken the necessary measures when designing its platform’s infrastructure, which allows them to ensure better protection from DDoS attacks, operational downtime, and malicious activities. On its Terms and Conditions page, DigiFinex explicitly states that, although it makes “every attempt to help prevent and mitigate cryptocurrency attacks,” in case of such, its contingency plan includes halting trading, deposits and withdraws for the affected coin. It also adds that, if attacks result in significant price drops for a particular asset, then it will be delisted. However, by providing extensive informative materials, the team behind the exchange has done a good job in explaining to their users how to enhance the safety of their funds and personal data.
The exchange also states that it employs a “SEC level IT security audit.” What it means by that is its platform infrastructure allows for all logs or modifications of server programs to be reviewed retrospectively, which is something similar to SEC’s requirement for US-listed companies.
When it comes to compliance policy, DigiFinex points out that it has a Compliance Officer, assigned with the task to manage the coordination and monitoring of all users’ compliance with the applicable AML laws and regulations. The strict policy, adopted by the exchange’s team, explains the long list of identification proofs that each individual or business client should provide upon registration. For individuals, the exchange requires details such as name, date and place of birth, phone number, email, copy of valid identity document, and a proof of address. Businesses, on the other hand, should provide the names of their representatives, address, copies of valid photo identification for the directors, and a company M&A proof and a profile description.
All these security and compliance measures help in the process of bringing transparency and earning users’ trust. Unlike many other exchanges, at the time of this writing, DigiFinex has no notable history of user complains raised on Reddit, Bitcointalk or other communication channels that have remained unaddressed. The customer support is timely and offers a variety of channels.
Similar to other exchanges, DigiFinex also has its own Ethereum-based token called DigiFinex Token (DFT). According to the exchange’s website, the DFT “powers the DigiFinex ecosystem and can be used in many ways.” Some of the use cases and advantages of the token include 25% discounts on trading fees, VIP fee structure (separate fee scheme for DFT holders), “Spin to Win” (a sort of a draw-based gambling game), buying jewelry with discounts or by paying in DFT and so on.
The exchange serves both business and individual clients and its primary target market is Asia and China in particular. Although it offers multi-language support and versions of its website, it does not accept US investors.
At the time of this writing, DigiFinex has no history of hacks, malicious attacks, government investigations, or reputation issues.