Denode, a regulated cryptocurrency exchange in Mongolia and the leading digital asset tokenization platform, has been providing regulated virtual asset services since receiving Financial Regulatory Commission (FRC) approval in 2022. This 2024 annual operations report has been prepared in accordance with the "Virtual Asset Service Provider Operations Regulation" approved by FRC Resolution No. 175.
Brief Introduction to Denode
AND Denode LLC, operating the Denode platform, was established in November 2021 as a subsidiary of AND Global group.
As a regulated cryptocurrency exchange, Denode.io bridges cryptocurrencies and traditional finance through blockchain technology, offering users a secure platform to trade and manage digital assets with competitive pricing and high liquidity.
Our development team consists of experienced Mongolian professionals specializing in blockchain technology, cryptocurrency trading, and digital asset tokenization.
Regulated Cryptocurrency Services
Denode.io provides the following regulated virtual asset services to customers in in compliance with Mongolia's Virtual Asset Service Provider Law:
- Exchange between virtual assets and official currencies
- Exchange between different types of virtual assets
- Transfer of virtual assets
- Storage and management of digital assets and related instruments
- Organization of activities related to public offerings and sales of tokenized securities, participation in financial activities and provision of services
Our cryptocurrency exchange offers popular digital currencies including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Dogecoin (DOGE). We've also pioneered Mongolia's first legal tokenized stocks of major global companies like Apple (AAPL), Tesla (TSLA), Amazon (AMZN), NVIDIA (NVDA); and the country's first fixed-yield tokens. Through Denode Launchpad, we enable real-world asset (RWA) tokenization, bringing traditional financial assets onto the blockchain.
Denode Exchange 2024 Operational Summary
Throughout 2024, Denode implemented significant improvements to our cryptocurrency trading platform, including upgrades to infrastructure, user interface, security protocols, and regulatory compliance systems while utilizing the latest blockchain technology and software widely used internationally.
Key Achievements in Digital Asset Trading:
- Enabled seamless USDT purchases with fiat currency for on-ramp and off-ramp of cryptocurrencies
- Introduced feature to transfer funds between different Denode product wallets
- Partnered with the world's second-largest exchange (UAE-regulated) as our cryptocurrency trading intermediary
- Implemented tokenized equity dividend distribution capability and distributed a total of 120 dividends from 37 companies to our customers
- Established connection with European-regulated Virtual Assets Service Providers to ensure reliable stablecoin (USDT) availability
Security, Risk, and Compliance Enhancements:
Our risk management framework undergoes semi-annual reviews with continuous improvements based on operational and market conditions. While our latest internal audit revealed no high-risk activities, we've strengthened our systems to accommodate significantly increased customer numbers and trading volumes:
- Maintained ISO/IEC 27001:2013 Information Security certification following a monitoring audit on July 2024
- Implemented comprehensive Politically Exposed Persons (PEP) screening
- Automated system security monitoring
- Throughout 2024, the Denode platform used Elliptic Ltd.'s automated blockchain transaction monitoring system to combat money laundering and financial crimes
Internal Policy Updates:
- Enhanced Anti-Money Laundering and Counter-Terrorism Financing protocols
- Revised Information Security Management framework
- Implemented new organizational compliance controls
- Established comprehensive conflict-of-interest and major transaction policies
Financial Performance Summary
Denode significantly expanded its digital asset and tokenization services in 2024, creating new revenue streams and substantially increasing total sales compared to previous years.
Despite the relative novelty of our asset tokenization services in the market, we've seen remarkable growth in trading volume and revenue, driven by our improved user experience, enhanced functionality, and expanded digital asset offerings.
As of December 2024, AND Denode LLC maintains a strong financial position with no transactions involving conflicts of interest or external debt obligations.
Future of Cryptocurrency and Tokenization in Mongolia
Looking ahead, Denode will continue expanding Mongolia's asset tokenization market while maintaining our position as the country's most secure, reliable, and fully regulated cryptocurrency exchange. We remain committed to developing advanced digital asset tokenization capabilities, increasing blockchain-based real-world assets, and expanding tokenized stock trading opportunities.
In 2025, we plan to introduce tokenized bond trading. This addition will enable our users to build complete investment portfolios tailored to various risk appetites, combining cryptocurrencies, tokenized stocks, and bonds.
For complete details about our 2024 performance and comprehensive cryptocurrency services, blockchain technology solutions, and digital asset tokenization capabilities, please see here.
Join Denode.io to invest in cryptocurrency, tokenized assets, and blockchain technology. We are Mongolia's trusted partner for digital asset management in the evolving landscape of financial technology.
Contact us: support@denode.io
To register and start investing: denode.io