Wex Review – is it scam or safe? explained by professional Forex trading experts the “ForexSQ” FX trading team.
Wex Review – is it scam or safe?
Wex claims to be a Singapore cryptocurrency exchange. It offers exchange services for some of the most popular cryptocurrencies: Bitcoin, Litecoin, Namecoin, Ether, Dash, Novacoin, Bitcoin Cash, Peercoin and Zcash. They can be traded for the following fiat currencies EUR, RUR, USD and for the other altcoins in the portfolio.
Wex’s cryptocurrency portfolio is relatively extensive and offers a good selection of altcoins for trading, plus a decent list of fiat currencies. The inclusion of Russian rubles strikes us as a bit odd, but more on this – later.
It looks like Wex does not require account verification, at least initially, and there is no clear information on the site.
The exchange does not offer leveraged trading. For those who wish to engage in leveraged trading, there are some cryptocurrency exchanges like Kraken, bitFlyer, Coincheck, Poloniex, Bitfinex, etc, who offer this type of service. There are also quite a few forex brokerages, like IG, HYCM, easyMarkets, Trading212, Admiral Markets, Plus500, Swissquote, who are offering CFDs on some of the most popular cryptocurrencies for those who are interested in speculative trading in those instruments.
The Company. Security of Funds
Wex uses a New Zealand domain, but claims to be under the jurisdiction of Singapore. It was launched in September 2017 and strangely resembles the interface of the troubled cryptocurrency exchange BTC-E, which was seized and shut down by the US authorities in the summer over allegations of money laundering and funding of criminal activities. Russian citizen Alexander Vinnik, the alleged owner of BTC-E was arrested in Greece and is facing extradition to the US over accusations of fraud and money laundering. The US authorities think that Vinnik has also received funds “from the infamous computer intrusion or ‘hack’ of Mt Gox.” Vinnik vehemently denies the accusations and says he has nothing to do with the exchange. BTC-E, on its part, also denies any connection with Vinnik.
According to a publication in Coindesk in September, Wex is indeed a spinoff of BTC-E, launched primarily to serve the needs of the former clients of the defunct exchange and has migrated the user databse, but claims it is not directly related to it. Wex also claims it did not receive any funding from BTC-E and said it will abide by the know-your-customer and anti money laundering rules. Additionally, Wex has released the Wex coin, a bonus coin, which can be traded on the platform.
Under Singapore law, cryptocurrencies are considered securities and should be approved by the Monetary Authority of Singapore (MAS) before their issuing. Furthermore, their issuers must be licensed under the Singapore’s Securities and Futures Act (SFA). Generally, Singapore is considered an “ICO Haven” and has a relatively liberal approach to cryptocurrencies and crypto-exchanges, even though MAS has issued warnings of the risks of ICOs and dealing with unregulated exchanges and issuers.
Wex does not deem necessary to inform its clients about the security measures it implements, most likely assuming that they are the old users of the BTC-E and already known all those things. We did not find information about whether Wex offers own e-wallet, or clients should choose an external one.
Like with most cryptocurrency exchanges that offer only spot trading, Wex’s platform is pretty basic and is not a trading platform in the real sense of the word. It has no charting or analysis tools, or anything fancy – just the buy and sell fields and an order book.
Nevertheless, there are some cryptocurrency exchanges that offer better trading platforms. BitBay, for example, provides some price movement charts from TradingView, while others, like Coincheck, even offer mobile trading applications.
Methods of payment
Wex has funding options with cryptocurrencies and fiat currencies. The good thing is that it provides numerous online payment platform options for fiat currencies, but most are mostly available in Russia.
There are also bank transfer options, but the minimum withdrawal fee for USD and EUR through an international bank transfer is the ridiculously high $/€ 100. Respectively, the deposit fee is at least $/€20.
Wex does not appear to accept payments with credit cards, which is a significant inconvenience, especially considering the extremely high bank transfer fees.
Wex Review – is it scam or safe? Conclusion
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