The Parliament of Mongolia approved the Law on Virtual Asset Service Providers on December 17, 2021. The law aims to create a legal framework for conducting activities related to virtual assets in Mongolia, ensure economic growth, support the development of the sector, protect customers' interests and fight money laundering and terrorism financing, and ensure the implementation of FATF Recommendation 15. It went into effect on February 25, 2022.
Upon its implementation, companies not registered at the Financial Regulatory Commission are not permitted to provide virtual asset services in Mongolia. To do so, they must be registered as a virtual asset service provider and acquire a license by complying with a list of requirements. Click here for further information.
ArdCoin's native exchange, iDAX, fully met the above requirements and is now officially registered as a Virtual Asset Service Provider (VASP) with the Financial Regulatory Commission. In this way, the iDAX exchange has not only formally confirmed that it can protect the security and interests of its users but also has the full right to operate as a crypto exchange in Mongolia and Internationally.
We have been a trailblazer in this industry. For example, in 2017, we started Bitcoin trading in cooperation with Xapo, the first Bitcoin wallet company in Mongolia, and established the Crypto Nation Fund.
In 2019, we created ArdCoin. Mongolia's first cryptocurrency and we are still expanding its ecosystem and continuously increasing demand and use case.
In 2020, with the ingenuity of Mongolian engineers, we established the DAX.mn exchange, and within one year, it became the exchange with the most extensive customer base in Mongolia.
In 2021, we established the iDAX exchange to grow our operations and expand to foreign markets.
Significantly, iDAX is becoming an officially licenced exchange in a country where cryptocurrency is formally recognized and legalized. It can become a bridge to connect international projects and users with the Mongolian market.
Registration as a Virtual Asset Service Provider or VASP is a significant event in the crypto industry. For example, FTX Exchange was registered as the first VASP in the United Arab Emirates on July 29, 2022.