CEX's and the joy of Bureaucracy

Just thought I’d give an update on the CEX situation and where we’re at.

Currently we are listed on gate.io and we are exploring other CEX’s to list on. The major blockers at this stage are:

  • Legal advice on securities

  • Market makers

  • Lack of legal entity

So for us to be listed on a lot of these exchanges, we need to submit legal advice around the nature of Pangolin as a security. The complication around this, lies in different jurisdictions. So while we have a European lawyer, when the core team was originally elected to Pangolin we did not have US representation. Over the past few weeks we have been meeting with various US lawyers and are now much closer to having this legal advice furnished.

When listing on CEX’s, some won’t ask for a market maker (such as gate.io) while the majority do ask for one.

Why do we need market makers?

  • They provide liquidity

  • They retain the spread

  • They keep the volumes in order books

We have reached out to two market makers and have started discussing their services and their terms. However for us to formally engage with a market maker, we have to sign a contract and provide liquidity to be used. This liquidity needs to be provided to the CEX from an institutional account. Currently Pangolin, doesn’t have a legal entity. This means we can’t create an institutional account on the CEX’s for the market making and also means we can’t sign a contract as Pangolin doesn’t have a legal entity which can engage in contracts. No market makers means we can’t be listed on certain CEX’s.

This means for Pangolin to continue it’s journey we need to form a legal entity from which we can operate from.

Enter the murky world of jurisdiction and crypto. This is where we are incredibly fortunate to have such a strong legal team. There are a myriad of things to consider when forming a company. Which country to form it in? What taxes are we required to pay? Can we have an international bank account that is crypto friendly? How are the core team affected by being Director’s of these companies? Do we have to pay extra taxes on our income?

All of these questions have to be considered and carefully weighed to ensure we make the correct decision.

You can be confident we are moving as fast as possible to get all these requirements sorted. However, the paperwork takes time and there is mountains of it. As soon as we have more concrete news, we’ll share that with you as to our progress and moving forward with taking Pangolin to it’s next phases.

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Thank you for your diligence on all the legal infrastructure :pray:

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