Homegrown cryptocurrency exchange platform PDAX on Tuesday said it is prepared for the uncertainties that grip the digital currency market with the upcoming Bitcoin halving event.
Halving happens every four years when the amount of bitcoin available for miners is cut in half, consequently slowing the production of new bitcoins and making mining less profitable.
“When Bitcoin started going up in price, and customers started coming to our platform, that really tested our platform five years ago. That’s bound to happen again. But I guess the difference between that happening four years ago versus today, as far as feedback is concerned, is that our platform is ready,” Nichel Gaba, PDAX chief executive, said.
The Bitcoin halving has historically triggered increased market activity and notable price fluctuations.
The anticipation surrounding the halving has intensified following the US Securities and Exchange Commission’s approval of spot exchange-traded funds (ETFs), making it easier for retail and institutional investors to buy and engage with Bitcoin directly. This development has played a crucial role in pushing Bitcoin’s price to an all-time high of $73,737.94.
“This is the first halving event where there are already institutional participants in the crypto market. Now that institutions are in the crypto space, we can expect whatever excitement propelled retail investors to take Bitcoin to $72,000. You can just imagine how much more that would be when institutions are also in the market. That’s why this upcoming halving is truly important,” he added.
In terms of the platform, PDAX said the bear market in the past few years gave them time to gear up for this year’s market.
“Before the approval of ETFs and the Bitcoin halving, we’ve been preparing our systems for it, making them more stable and secure. We work with various organizations to make the frameworks up to stuff. The idea is that if a user wants to get in on the action, there’s an easy way to do it, and there’s a secure way to do it. We are not stopping, and we’re continuing to improve our platform,” Vincent Tio, head of Platform Solutions at PDAX, said.
The PDAX CEO noted the constructive stance of local regulators towards financial innovation and how this level of oversight is crucial for platform integrity and user trust.
“What happened since the crash of Luna and the bankruptcy of FTX really made regulators aware of the risks of platforms that are unregulated. I cannot overstate the significance of a platform being regulated. Regulated means that the BSP visits PDAX and makes sure that we are processing transactions correctly. Every quarter we have to report any significant change in our platform and we’re also bound to conform to the guidelines that they set,” Gaba explained.
“A lot of what the BSP and the SEC have been doing in the past year and a half is not just to create new rules that can safeguard the public but to enforce already existing rules. As crypto becomes much more popular moving forward, we can expect the regulators to continue to raise the standards,” he added.
Launched in 2018 and regulated by the Bangko Sentral ng Pilipinas, PDAX stands as the country’s leading cryptocurrency exchange, offering a secure platform for trading over 70 assets, including cryptocurrencies and tokenized bonds, with plans to expand its asset offerings.
