The big banks may be complaining about blockchain enough to launch token experiments of their own now – and many of them are.
In the meantime, they continue to face competition from the Fintech community, which is moving into their territory fast now.
Midex is one of those competitors. The globally based and incorporated firm is set on becoming the world’s first regulatory compliant blockchain bank.
Customers can obtain a full range of banking services readily available in the fiat banking system, but hard to find in the world of cryptocurrency. Private banking consumers can use cryptocurrencies more easily. Business clients can obtain intermediary and guarantor services. Traders and investors have a more secure, regulated environment in which to participate in the market.
We recently sat down with Dmitry Machikhin, CEO of Midex to have a chat with him about the project as well as finding out his thoughts and insights.
Dmitry. Thanks for joining us today. Can you tell us more about yourself and Midex?
I am the CEO of Midex and I run all of its operations and make decisions from business strategy side to make Midex stronger. I am also responsible for external connections and communications with advisors. Before being involved in Midex I was a partner of a consulting firm GMT Legal and I was an advisor to several blockchain startups. So I have legal and business background.
You say you want to be the world’s first blockchained bank. How is that different from traditional banks offering blockchained services or even coins?
We will not try, I am definitely sure we reach this point and this a main goal of the team. You can just take a short look at Midex to make sure why it is at least more useful. In the meantime, our safety system, and blockchain we use are completely outstanding. Cryptobank! They can exist and we know how to get there. By launching additional services such as credit and investment platform or ATM network etc. by our Roadmap we will resolve all crypto-fiat issues and will bring a whole solution to the market.
How did you come up with the idea and what was the thought process behind it?
I have been in the crypto and blockchain industry since 2014 so I had a chance to learn a lot about it since the time when nobody cared about blockchain. I was an advisor on some projects and helped them to make an ICO or to build a good business, so I’ve got a vision how to do these things. Thus I do all my best to help Midex become blockchain company #1 in the world.
What is the biggest problem within the industry or do you think there is a gap in the market for Midex to fill?
The main problem of cryptocurrency industry is availability. Still, there is no normal mechanism via which a person can refill the balance with Visa, trade cryptocurrency or participate in different token sales and do it legally and safely.
From here we can observe the second problem which is the legal validity of regulation and unified consolidated positions of governments. There are examples when in one country different governmental structures have a different point of views and several spaces in lawsuit arise. Until there is no unified opinion on this question it will be difficult for citizens to participate in, consequently, the problem still exists. Moreover, there is an opportunity for speculators and swindlers as there is no understanding and foreseeability in the market. It is still badly regulated processes.
When it is solved it will be possible for Midex to be one of those solutions that allow people and business sector to acquire access to the industry of cryptocurrency then the capitalization will become bigger and it provides competition for traditional financial institutes, banks, classic exchanges and possibly for broker companies.
What do you think is the biggest problem Midex will solve and why is the problem important to solve?
Banks are still in doubts in terms of blockchain based companies because of ICO’s. It may also be due to frauds and scams appearing in last half of last year so banks might be making moves against potential risks. Besides most of the blockchain companies are operating somehow with bitcoins and other cryptocurrencies which might give banks AML concerns considering the restrictions and possible license revocation. Midex’s general strategy is to improve the system and to let businesses open crypto-accounts with all AML and KYC procedures. We understand that basically, it depends on government’s position mostly in all countries. But we will explain to the majority that crypto is not a crime but a progressive and evolving tech and finance space.
You are a “multi-country” company to create a regulatory framework for your own operations. How complicated was that to set up? What guided you?
Our main company is in Hongkong. It holds all our IP and rights for a product. Estonia and Russia are branches. In Estonia, we have a representative office holding alternative money license for changing and buying crypto and payment service to operate with fiat. Besides, Estonia is an emitent of our tokens, which is very important part of a system.
Besides, we received the license to virtual money exchange and to open a wallet for virtual money (license number: FVR000001) according to the new Estonian legislation.
This license allows Midex to exchange crypto-currencies, including fiat money, as well as to open electronic wallet for users of the financial platform.
Editors Pick: Midex ICO
Banking and blockchain have been around since the invention of bitcoin – but these days, cryptocurrency financial services are integrating cryptocurrency options into regulated and traditional financial services. Despite the pronouncements of dire endings, fraudulent pyramid schemes and bubbles, not to mention still occurring efforts to ban crypto purchases directly
In the whitepaper, you talk about the challenges of linking the world of cryptocurrency to the world of fiat banking. Can you explain a few of what those are – and some of the harder gateways you have had to create to ensure that crypto customers can have access to regulated banking services?
Midex is the solution to connect the classic financial world with cryptocurrency. This is achieved through our core service built on a modular structure which allows implementing such important products as escrow, classic banking, P2P lending service, the introduction of a cryptomats network, and, of course, our own exchange. As a financial platform, Midex is a holistic project, and when all services are launched according to our roadmap, the company will be more like a crypto bank than like an exchange. We can say that Midex is the solution of problems in the financial sphere of crypto-currencies and such solutions have not existed so far in the market. One of the advantages of using the Midex platform is the opportunity to work on the exchange without having any technical knowledge and background.
All menus are intuitive and easy, where fairly light colors are used and the information is translated into several languages. If there are any doubts or questions, you can always contact support — technical support is ready to help at any time. Also, you can always get a response to any question in our English chat in Telegram.
Regulation-wise, what are the toughest challenges you will have to overcome? And from where?
Our main challenge, for now, is to make a good ICO enforce making Midex exchange popular and liquid. I can assume that legal issues are also very important for now. Governments introduce universal regulation, but we fully comply with the legislation in those countries where Midex is located and don’t violate the rights of third parties. At the same time, if users of our platform are prohibited from participating in the ICO by its local legislation, then the risks will be beared by himself, because of the legal policy of our site. If a person can’t trade on Midex due to our terms, then after conducting KYC, we will find it out and will not verify such account.
If a request for information is received from the government or a competent authority, we will certainly comply with any requirements and laws, if documents are properly framed. This is the whole task for Midex to make an exchange trade in the cryptocurrency field transparent, understandable and legitimate.
What are the services you plan to offer that excite you the most?
Midex is made of the scope of module services. So, in traditional terms, we would be called a ‘financial group’. In the world of future technologies, however, we are a host platform for: our unique totally licensed crypto exchange; Midex Banking (cards, ATMs, escrow service); Midex Trust (asset management fund, marketplace); Midex Credit (P2P credit; marketplace); Midex Business (blockchain development for private clients). All of these services are very important and together they make an impressive and effective system.
What has been your happiest moment so far working on Midex? On the flipside, what has been the most painful, or perhaps the most regretful decision you’ve made with Midex?
I expected something alter from behavioral factors of people that invest in tokens during token sales and ICO. Not so recently I’ve realized the changes in paradigm. Maybe it didn’t change and it is inside of me. I understood the motivation of people. Maybe I was too idealist now I am more pragmatic. Diving in process of distribution and sales of tokens and attraction of people in the platform I discovered new horizons. I understood what moves people when they buy tokens, how they look at this, where their interest is, in which perspective they in invest and so on. I don’t have surprises most of my predictions were right and I think that later it will be predictable without overshoots. It depends on regulators and whales but I have strong confidence that everything will develop in a foreseeable way. It this domain I am calm.
What is the indicator you are looking for to tell you that you have begun to achieve your mission?
Our task is to unite people’s everyday financial lifestyle and the benefits that the cryptocurrency world carries.
Tell us more about the MDX token.
What are the selling points and what does it do in the system?
We offer a really unique token- MDX. The purchaser can earn either 20% of daily profit or bonuses inside Midex system. When you use both of these internal tokens ( MDI for profit or MDB for bonuses) your MDX gets burnt. It works with the Bancor protocol and provides liquidity so your MDX price will rise. We released 75 mln tokens and will sell 65% to our contributors. The rest will be distributed via the bounty program, team and advisors. All unsold tokens will be burnt automatically. I suggest paying attention to our ICO not only because I’m a CEO, but because the token economy is awesome and our token-holders will absolutely make sure about this by getting a lot of profit.
Moving on to more personal stuff, what does a typical day in your life look like?
My day is ordinary during ICO I have days of Superman a little. I wake up early and have time to fulfill lots of tasks: give responses to emails, check social networks. In the morning at the office, we usually make daily briefings concerned the main aspects of work in order to all can get some energy from real communication between each other. Later in the day, there are lots of meetings and negotiations on Skype and alive. The discussion of crucial moments endures till the end of token sale after that it will be more understandable and calm. There is no time for such things as sport or personal deals but I hope that in future my schedule will be more stable. It is a destiny of company that makes a token sale but I don’t complain. It is a rhythm that I can keep.
Can you express one personal opinion of yours about the blockchain? It doesn’t matter if it’s negative or positive, we just want to hear your thoughts on it.
Absolutely. I’ve seen it in early 2014 when word blockchain was a kind of bad word. I completely agree with those who call blockchain Internet 2.0 because it resolves most of the unsolved problems with confidence to the third party or of safety transactions. Blockchain brings us the huge number of profit. Its decentralization and smart contacts infrastructure could rebuild the system of deals, finances, laws, healthcare, logistics mostly everything in our normal life. And it does.
It is obvious that cryptocurrencies, the blockchain, fundraising, and ICO fundraising won’t disappear. They only give way to new projects and teams that actively use it. Despite this, a huge growth potential remains. The blockchain is undoubtedly associated with the fourth industrial revolution, as well as with IoT, big data, and robotics. With timely introduction of all positions, the world will acquire a completely different picture, and the Internet will be simply servicing mechanism. This is exactly what is being talked about: the Internet will be completely free and publicly available. The main feature will be a new type of payments working on the blockchain, which are cryptocurrency payments
What’s something that you believed to be true for a long time until you found out that you were wrong, or if you don’t like that dichotomy of right versus wrong, what’s something significant that you really changed your mind about over time?
In any case, it’s all to the good. Even from bad events, we have to retrieve maximal profit. It is one of the principles of our working process. Lots of mistakes have finally led to great inventions. Moreover, there are positive events when our public performances sparked interests from different investors and media. It is very pleasant to see such an interest of the crypto community and publicity to your business activity. Midex get more and more followers every day and their quantity will be bigger but it depends on your work and teamwork.
Finally, what other personal goals (besides your career) do you have in life? Is there anything else in life you want to achieve?
Responding such a question I want to say that I have simple goals as common human-being has – personal success, carrier performances, family, the realization of projects in which your team believes especially in which that shape the world and make our life better. I think that hard work leads to successful performances.
That concludes our Interview with Dmitry Machikhin
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