“National Multi Crypto Currency Exchange” is all set to give a robust platform to cryptocurrency investors in India. One thing that makes it stand out is its structure. But, a lot will depend on cryptocurrency regularisation in India.
NMCCX follows the traditional Professional Clearing Member-Trading Member-buyer/seller model, which has been the set system in the conventional stock and commodity market. The system has passed the test of time over many decades. Now, NMCCX intends to implement the same for the cryptocurrency market.
The biggest challenge in the present cryptocurrency market in India is liquidity. While there are a number of so-called cryptocurrency exchanges in the country, the market tends to be shallow when it comes to liquidity. Many of the cryptocurrency-buyer/sellers are clueless about what to do with the digital currency in their wallet, due to the institutional illiquidity in the ongoing market. That is exactly what NMCCX claims to solve.
NMCCX plans to make buyers/sellers confident about cryptocurrency trading and the intricacies associated with it. The majority of the insecurity sneaks in due to the fear of the unknown. NMCCX is confident about its team of trainers who constantly enlighten people about all the aspects of the cryptocurrency market. If more people are aware of it, it is obvious that more people will start taking an active part in the trading process. It may also push lawmakers to take appropriate actions on cryptocurrency regularisation in India.
NMCCX plans to keep the transaction window open at all time to help traders control liquidity on their own, while providing the neutral trading platform round the clock. It will have the ease of initiating the trades at the choice of market participants, whereas NMCCX would engage itself in market-wide risk management.
According to NMCCX COO Mr. J. B. Ram, NMCCX comes up with a plan to reduce systemic risk.
“Our neutral anonymous trading structure, having the accent on strong risk management, would protect the market from financial meltdown,” Mr. Ram said.
“Systemic risks are responsible for traders taking excessive risks and eventually facing asset value crash.”
NMCCX believes that the government would come up with due regulations for the cryptocurrency market, Mr. Ram points out. He added that an appropriate regulatory mandate would go a long way in enabling NMCCX impart proper buyer/seller protection in this emerging market segment.
NMCCX hopes that cryptocurrency regularisation happens soon in India, so that the buyers/sellers have the opportunity to buy/sell in all types of financial instruments with varying risk-reward matrix.