Crypto Exchange Bitstamp: Our New Matching Engine Will Be Up to 1,250 Times Faster

Siamak Masnavi

On 5 November 2018, cryptoasset exchange Bitstamp announced that it had partnered with Cinnober, a leading provider of trading and clearing technology, in order to replace its in-house developed matching engine with Cinnober’s "TRADExpress Trading System". The customized software "will be hosted and operated by Bitstamp."

As reported by CryptoGlobe, Bitstamp, which was founded in 2011 by Nejc Kodrič and Damijan Merlak, got acquired by European investment firm NXMH. In an article posted on its website, Bitstamp explained why it chose to partner with Cinnober:

"We chose Cinnober because of their proven track-record in worldwide financial marketplaces, their understanding of our vision and ability to work closely with us to customize the technology to meet our needs."

Stockholm-headquartered Cinnober was founded in 1998. Its customers include Australian Securities Exchange, Athens Stock Exchange, Dubai Gold & Commodities Exchange, Johannesburg Stock Exchange, and London Stock Exchange.

David Osojnik, Bitstamp's Chief Technology Officer, says:

“While Bitstamp’s matching engine was already very good by crypto standards, this will put us in the same league as traditional exchanges with decades of experience. Our platform’s order matching speed is expected to become 1250x faster, while throughput will increase by 400x.”

The implementation will be done in several stages, with the first stage taking place in Q1 of 2019; the new matching engine should be fully integrated into Bitstamp by the end of Q2 2019.

According to Cinnober's press release, Peter Lenardos, the CEO of the Cinnober Group, stated:

“We are excited to announce this partnership with Bitstamp, facilitating continued success for their marketplace. Bitstamp is one of the world’s leading bitcoin exchanges and has a position of trust in the digital currency trading community. By upgrading their trading technology to further improve performance and stability as interest from investors and regulators grow, they demonstrate their firm commitment to providing a safe and reliable marketplace.”

As for Bitstamp's CEO (Nejc Kodrič), he said:

"This is a crucial step on our mission to bridge the gap between crypto and traditional finance."

Eric Wall, Cinnober's Cryptocurrency & Blockchain Lead, tweeted:

 

Featured Image Courtesy of Bitstamp

Peer-to-Peer Bitcoin Exchange LocalBitcoins Halts Services in Iran

LocalBitcoins, a Helsinki-based peer-to-peer cryptocurrency exchanges, has recently stopped offering its services in Iran, presumably over U.S.-led sanctions that pressured other exchanges into withdrawing their services from the country.

According to CoinDesk, various LocalBitcoins users started noticing they were having problems posting new trades and updating previous ones, before the firm’s website started showing a message in Iran’s country page stating “LocalBitcoins is currently not available in your selected region.”

A response from the peer-to-peer exchange given to an Iranian user soon started circulating on social media. It saw LocalBitcoins state:

If you have an account already, you will be able to withdraw your bitcoins, but you will not be able to use the platform for trading.

Later on, the exchange replied to several Iranian users on Twitter, stating that its services weren’t available in the country for “risk-based reasons.” The move came as a surprise, as available data shows LocalBitcoins was seeing its trading volume in Iran surge.

According to some the exchange allowed users to trade using their local bank accounts, without the need for an international credit card. As covered, sanctions have seen Iran be get banned from using the SWIFT system.

In response the country ended up launching a gold-backed cryptocurrency called “PayMon” that is based on the Stellar Lumens (XLM) network. The cryptocurrency seemingly hasn’t been mentioned since reports revealed a company called Ghoghnoos and four national banks were cooperating with authorities to produce a system for it.

Currently, Iranian users can withdraw their bitcoins from the website, but are unable to create any new trades. The move sees LocalBitcoins join a number of cryptocurrency exchanges that have withdrawn their services from the country, including Binance, Bittrex, and ShapeShift.

Nevertheless, alternatives exist. These include decentralized exchanges that allow users to trade cryptocurrencies directly from their wallets. While U.S.-led sanctions can pressure exchanges into blocking Iranian users, truly decentralized platforms won’t discriminate based on nationality.

It’s worth noting that earlier this year LocalBitcoins revealed it was working with local regulatory authorities to implement new anti-money laundering (AML) regulations to comply with local standards. In January, the exchange was breached as a hacker managed to steal $28,000 worth of crypto phishing its users.