XREX Exchange has significantly deepened its strategic partnership with KGI Bank. This expansion builds upon the successful collaboration that began in June 2024, which initially introduced US Dollar custody and deposit/withdrawal services. As of January 9, 2025, XREX has now integrated KGI Bank's New Taiwan Dollar (TWD) custody service, offering users a more comprehensive and robust channel for fiat currency transactions.
This new service is available to users who meet the following eligibility criteria and complete all required bank account verification processes on the XREX Exchange website or mobile app:
- Republic of China (Taiwan) nationals.
- Foreign nationals holding a valid Alien Resident Certificate (ARC).
A custodian bank is a financial institution that partners with an exchange to provide fiat currency deposit, withdrawal, and trusted custody services. By utilizing bank-level custody, user assets are completely segregated from the exchange's operational funds, significantly enhancing the security and transparency of user holdings.
A representative from KGI Bank commented on the development: "As the acceptance and adoption of digital assets continue to rise, establishing a robust financial infrastructure is paramount. KGI Bank is thrilled to further our collaboration with XREX Exchange, assisting the public in adopting new assets and diversifying their portfolios within a secure and transparent trading environment. This partnership exemplifies the convergence of traditional and blockchain finance, adding positive momentum to the development of Taiwan's digital asset market."
Cryptocurrency has become an indispensable part of the modern financial landscape. The lines between traditional finance and blockchain-based finance are increasingly blurring. Through strategic cooperation, the industry can lower the barriers and friction for users seeking to own and manage new digital assets.
A seamless deposit and withdrawal experience, stable fiat currency gateways, and secure custody mechanisms are three critical pillars for any exchange. In this context, the role of partnering banks is extremely crucial.
The continued deepening of partnerships with established financial institutions also signals XREX Exchange's commitment to compliance and security, ensuring alignment with banking standards. This synergy is dedicated to creating a smoother and more complete trading experience for users, supporting the sustained development of the blockchain ecosystem, and enabling even first-time entrants into the cryptocurrency world to trade and invest with confidence.
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Understanding Custody Services for Digital Assets
In the world of digital assets, security is the foremost concern for investors. Custody services provided by licensed banks address this need by acting as a trusted third party that safeguards users' fiat currency. This model ensures that customer funds are held separately from the exchange's corporate assets, which is a fundamental principle of consumer protection in finance. This separation mitigates risk in the unlikely event of an exchange encountering operational difficulties.
For users in Taiwan, having access to a local bank like KGI for TWD services simplifies the process. It allows for direct deposits and withdrawals in their native currency, avoiding the complexities and potential fees associated with foreign currency conversions. This local integration is a significant step towards mainstream adoption, making the entry into cryptocurrency more accessible for a broader audience.
The Importance of Regulatory Compliance
Operating within a regulated framework is no longer optional for serious cryptocurrency exchanges. Partnerships with reputable banks are a strong indicator of an exchange's dedication to adhering to Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations. These collaborations require exchanges to implement rigorous identity verification (KYC) processes, which help protect the entire ecosystem from illicit activities.
For users, choosing a platform that prioritizes compliance means investing on a platform that values long-term sustainability and user protection. It ensures that the exchange is working closely with financial authorities to create a safe and orderly market, which ultimately benefits all participants.
Frequently Asked Questions
What is a custodian bank in cryptocurrency?
A custodian bank is a regulated financial institution that safeguards customers' fiat currency on behalf of a cryptocurrency exchange. They manage deposits, withdrawals, and ensure funds are held in trust, separate from the exchange's own finances, thereby significantly increasing asset security.
Who is eligible for the TWD custody service on XREX?
This service is available to Republic of China (Taiwan) nationals and foreign nationals who possess a valid Alien Resident Certificate (ARC). Eligible users must also complete the full account verification process on the XREX platform.
Why are partnerships with traditional banks important for crypto exchanges?
Collaborations with established banks bridge the gap between traditional finance and digital assets. They provide users with familiar, secure, and efficient fiat currency channels, enhance regulatory compliance, and lend greater credibility and stability to the crypto exchange ecosystem.
How does bank custody make my funds safer?
Custody ensures a strict separation of assets. Your fiat currency is held in accounts under the bank's control, not the exchange's. This structure protects your funds from being used for any operational purposes of the exchange and is a cornerstone of financial security.
What are the benefits of using a local currency gateway?
Using a local TWD gateway eliminates the need for currency conversion when depositing or withdrawing, which can save on fees and simplify the process. It provides a more straightforward and cost-effective onboarding experience for local users.
Is my data safe when using these regulated services?
Reputable exchanges and banking partners deploy advanced security protocols and encryption to protect user data. Furthermore, their adherence to strict financial regulations means they must comply with rigorous data protection and privacy standards, ensuring your personal information is handled with care.
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