Revamped Crypto Derivatives Exchange Qume Set to Fly in Wake of BitMEX Woes

Oct 12, 2020 at 08:00 UTCUpdated Oct 12, 2020 at 14:00 UTC.The timing couldn't be better for regulation-focused trading platform Qume, which unveils a revamped set of services Monday.

Even in its soft-launch phase, the derivatives exchange has been mopping up customers in the wake of U.S. charges against BitMEX."We've seen an uptick in users, with about 2,000 customer sign-ups in the last week," Aditya Mishra, CEO of the Singapore-based Qume, said in an interview.

Having noticed the crypto derivatives space operated "Like the Wild West," Mishra said the clampdown by U.S. regulators and federal prosecutors did not come as a huge surprise within the derivatives community.

Qume last week completed the integration of Berlin-based Fractal, which uses AI and runs photos of new users across KYC databases in their home jurisdictions.

The derivatives platform does not offer its services to customers based in the U.S. or retail customers in the U.K.Just last week the Financial Conduct Authority finalized its ban on crypto derivatives to retail customers based in Britain.

Thanks to the explosive growth of decentralized finance, firms like Qume are busy figuring out how to build bridges to a more decentralized trading experience, focusing on areas like custody.

The platform, which previously raised $3.5 million with a cap table that includes DeFi darlings like Robert Leshner and Calvin Liu of Compound Finance, provides customers with a kind of hybrid offering that can operate like a decentralized exchange.

"There is a certain type of user that really cares about decentralization and will only come and trade if they control their own keys. But then there is also the more traditional customer from India, for example, who just sees the volatility in the crypto markets, but doesn't necessarily want any exposure to crypto as such."

Rather than focusing on the typical Asia markets, Qume is directing its attention towards fresh pastures in India, the Middle East and Africa, said Mishra.

The company is poised to make inroads to the Indian crypto market, driven by the acquisition of Indian spot exchange BitPolo back in August of this year.