Former Mt. Gox CEO to Launch EllipX Crypto Exchange in Europe

Mark Karpeles, the former CEO of the now-defunct cryptocurrency exchange Mt. Gox, is set to launch a new crypto trading platform, dubbed EllipX, in September. Based in Poland, EllipX will initially cater to European users, with future plans to expand its services globally.

While the exchange will begin as a crypto-only platform, there are potential plans to incorporate banking and fiat currency services down the line, Karpeles said during Korea Blockchain Week.

The launch comes as Karpeles aims to restore trust in the crypto space, focusing on compliance and transparency. EllipX will adhere to the European Union’s Markets in Crypto-Assets Regulation (MiCA), a key framework guiding crypto activities across Europe.

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Tech Advancements Allow for More Secure Storage of Assets

During the interview, Karpeles said that technological advancements now allow for more secure storage of cryptocurrencies. He pointed out that the crypto exchange sector hasn’t seen significant change over the years, but he believes in leading by example.

“I think the best way would be basically to lead by example, to show that connection can be built in a fully transparent way,” he said.

In an attempt to reconcile with former Mt. Gox users who lost assets during the infamous hack in 2014, Karpeles announced that EllipX would offer them at least a 50% discount on trading fees.

The discount is linked to non-fungible tokens (NFTs) that Karpeles had previously issued as a gesture of goodwill to former Mt. Gox customers. However, only a few hundred of the million affected users have claimed the NFTs.

Former Mt.Gox CEO on stage right now for the second time today at #KBW2024 #Seoul @michaelterpin @MagicalTux @kbwofficial Mark says he wants to “make right what went wrong” by launching a new European crypto exchange — EllipX exchange will be headquartered in Poland. #btc … pic.twitter.com/ZXxbCSx7Ne

— Tanzeel Akhtar (@Tanzeel_Akhtar) September 4, 2024

Karpeles acknowledged the challenges he faced after the collapse of Mt. Gox, including death threats, but noted that attitudes toward him have softened over the years. He expressed surprise at the warm reception he has recently received from the crypto community, even being invited to speak at conferences.

Meanwhile, Mt. Gox has begun repaying some creditors as part of its rehabilitation process, distributing repayments in Bitcoin and Bitcoin Cash. Despite initial concerns about a potential sell-off, many creditors have chosen to retain their assets after waiting a decade for restitution.

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Non-EU Crypto Firms Under Scrutiny For MiCA Compliance

Karpeles’s plan to launch an exchange in Europe comes as the European Securities and Markets Authority (ESMA) has raised concerns about non-EU firms providing crypto-asset services within the EU without fully complying with the MiCA regulation.

Last month, ESMA published a Final Report  under the MiCA framework, presenting eight draft technical standards designed to enhance transparency and clarity for both retail investors and crypto-asset service providers (CASPs).

These standards cover various areas, including sustainability indicators, business continuity plans for CASPs, trade transparency, order book formats, record-keeping protocols, and the readability of white papers.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.