Hello, everyone. My name is Tanim Rasul. I'm the chief operating officer and a member of the founding team at NDAX. I want to thank the committee for inviting me to speak today, and I commend everyone for taking the time to learn about this fast-growing and innovative industry.
NDAX is a leading Canadian crypto-asset trading platform that was founded in 2017. Our goal has always been, since day one, to give Canadians safe, simple and secure access to crypto-assets. We service Canadians in all provinces and territories, and to date have done over $9 billion of trade volume. We have over 40 employees across Canada. Our head office is in Calgary, Alberta.
We created NDAX to resolve some of the challenges Canadian investors faced in this space, including how difficult and unsafe it was to purchase crypto-assets in the early days. Platforms like QuadrigaCX lacked regulation and had poor governance and internal controls. This resulted in Canadian users finding it extremely difficult to get their funds off these platforms.
NDAX has always emphasized robust compliance and operational systems. One of our first hires was a chief compliance officer with experience in the IIROC-regulated space, who helped create a set of comprehensive policies and procedures that mirrored those of traditional financial companies. Our first milestone was to obtain registration with FINTRAC as a money service business. This allowed us to be the first Canadian crypto-asset trading platform to obtain a stable operating bank account with a Crown corporation financial institution. In the first month of our operations, we proactively engaged with our principal regulator to ensure their full understanding of our business model and NDAX's offering.
I know this committee in the past days has spoken to other Canadian CTPs, so I will be brief on how our platform operates. Canadian residents can buy, sell, deposit and withdraw several different crypto-assets through our website or our mobile app. We do not offer margin or derivative trading, and we do not allow our clients to deposit funds via credit card.
We built our platform on the core principles of trust and transparency. Rather than have celebrity endorsements or sports arena deals, we felt the best way to build trust with our customers was to complete voluntary third party attestations. We're the only Canadian-based crypto asset trading platform to obtain their SOC 2 type II certification. This is an audit that focuses on and tests an organization's internal control framework. We have successfully completed IFRS financial statement audits by a reputable and recognized Canadian panel auditor, and we continue to do that on an annual basis. We also have an audited form 1 with a Canadian regulator. For the past 12 months we have filed monthly financial reports that include disclosing our risk-adjusted capital. We are obligated to disclose to regulators any early warning sign triggers that happen from our working capital. We must disclose to them within 24 hours of the trigger happening.
With everything that's been happening, I just want to reassure members of this committee that NDAX would never loan out customer assets. We never use customer assets for our own trading. We operate on a full reserve basis. We do not operate, nor are we affiliated with, any sort of proprietary trading.
I want to address FTX, Celsius and Voyager and the things that have happened. Their poor risk management, their internal control failures and their lack of governance have lost billions of dollars' worth of customer assets, including those in Canada who lost assets on FTX. It's important to note that what happened with FTX draws comparisons to QuadrigaCX, a first mover and a popular Canadian CTP that was founded in 2013 and became insolvent in 2019. The results of this insolvency of QuadrigaCX had regulators create a framework that encouraged Canadian CTPs to handle client assets in a more safeguarded manner. This is a clear example of how together we can proactively create frameworks to help Canadian investors and protect them.
A recent report from the OSC found that three of the top four platforms used by Canadians are foreign-based. Foreign-based platforms like FTX were not required to have the same requirements as Canadian-based platforms to safeguard customer assets. We should note that in the United States, FTX created a sub-entity called FTX US. When the parent company, the unregulated parent company of FTX, folded and became insolvent, so did the FTX US sub-entity. This should be an important warning for how Canadian policy-makers treat foreign-based platforms as they enter the Canadian market.
We're at a pivotal moment in the crypto-asset industry. We have a chance right now to create smart policy, protect Canadian investors and encourage innovation for years to come.
Thank you for your time. I'm happy to answer any sorts of questions you may have.