A new bitcoin exchange has launched in Perth, the largest city and capital of Western Australia, a rural state with roughly one inhabitant per square kilometer.
Called Digital World Ventures (DWV), the bitcoin-only exchange will aim to target consumers across the country who want trade between the Australian dollar (AUD) and bitcoin by leveraging exchange software provider AlphaPoint.
DWV director James Clarke and co-founder Ian Davies suggested that despite his company’s location, he believes it has much offer a market he characterized as lacking a strong approach to customer service or technology.
Davies told CoinDesk:
“We’ve got a lot of people coming into the exchange space that either have a heavy technical focus or we’ve got the finance guys coming in and running exchanges. Because we’ve experienced both sides, we’re able to bring that together.”
Davies previously worked as a support technician for IBM and boasts experience running service desks, while Clarke was formerly a systems analyst for Barclays Bank.
Trading fees will start at 0.70% on BTC trades of $AUD500 or less, a figure that decreases to as low as 0.08% on trades of $AUD200,000 or more. The exchange will also charge goods and services tax (GST) on transaction fees paid by buyers and sellers.
Exchange consolidation
Clarke and Davies also addressed the ongoing consolidation in the bitcoin exchange and marketplace space, which has seen former market leaders such as Buttercoin, Cavirtex and Vault of Satoshi close in recent months. DWV said its business account with Westpac Bank and the liquidity provided by AlphaPoint’s global exchange network would help mitigate this risk.
“We’re all about stability and building brand awareness,” Clarke said. “That starts with finding that banking partner. We don’t have concerns like in Canada where banks are freezing their accounts.”
Clarke suggested that in the face of what he acknowledged could be a continuing trend, DWV would further seek to reach out to connect with the local community.
“We want to make everyone aware we are who we are, we’re not intending to go anywhere. Hopefully that generates comfort that we’re not going to be another Mt Gox, we’re here for the longer term, we have a financial viable model and a fantastic technology model,” he continued.
Looking forward, the exchange will seek to establish a physical presence in Perth, enabling cash trading and creating another level of comfort with users, though this is an idea that has not yet reached development stage.
“We want people to feel comfortable about who they’re dealing with,” Davies added.
Bootstrapped business
Clarke and Davies reported to launching the exchange using a mix of self-financing and peer-to-peer lending enabled by BitLendingClub, though they suggested that this will help them move forward toward profitability quickly.
An active user of the platform, Davies secured a 15 BTC loan from the community on 14th March, an extension he said would be needed to provide added liquidity to the exchange while promoting its brand to the public. Davies has a 100% positive rating on the service, having actively used the platform to trade on LocalBitcoins.
Davies’ profile on the website suggests DWV sought a loan of 40 BTC in February to help launch the exchange.
At the time, Davies’ wrote that he expected the exchange to break even on its investments within the first three months of operation.
Western Australia image via Shutterstock