cryptotradingbook

Reading an exchange profile

Foundations · ~8 min read · Reviewed 2026-10-02

At a glance

1. Three numbers that are kept separate

The top of every profile shows the Regulation Score in bold, followed by the Trust Index and the Offering Index. We keep them apart deliberately. An exchange with low fees and hundreds of coins could otherwise "buy back" a missing licence in a single average. The Regulation Score is never averaged with the Offering Index, and the colour bar uses a single blue scale rather than a traffic light. The full rubric is on the methodology page.

NumberScaleMeasuresDoes not measure
Regulation Score0-10Licences actually held (tier, status, scope), minus penalties for warnings and revocations.Fees, product range, or user experience.
Trust Index0-10Track record: regulation, incident history, proof of reserves, withdrawal reliability, transparency.Whether the exchange is cheap or has many coins.
Offering Index0-10What you get: fees, asset coverage, fiat methods, support, payout speed.Safety. A high Offering Index can sit next to a low Regulation Score.

Remember: Read the Regulation Score first and the Offering Index last. A great offering does not make up for a missing licence. Our scores describe facts and are not recommendations.

2. Listing status: Listed, Links restricted, Info only

We list exchanges regardless of their licence status so that you can check the facts. What changes is how we present them. The status is derived automatically from published deal-breaker codes (DB-A and DB-B), and the reason is shown in the notice box on the profile.

StatusInternal codeMeaningTag
ListedlistedNo deal-breaker found. Full profile; a neutral or partner link may be shown.
Links restrictedlisted_restrictedA B-level deal-breaker applies, for example no active licence, an active regulator warning, recurring withdrawal complaints or an unclear operating entity. A caution box explains why.links restricted
Info onlyinfo_onlyAn A-level deal-breaker applies: sanctions, fraud proceedings, unresolved insolvency, a confirmed scam, or paused or defunct operations. Scores are frozen and there is no link.info only

3. What the tags mean

Tags are generated from the profile data by fixed rules, so the same facts always produce the same tags. These are the ones you will see most often:

TagMeaning
hack historyAt least one recorded security breach. Check the incident log for date, amount and whether users were made whole.
withdrawal issuesA withdrawal freeze within the last 24 months, or recurring or systemic complaints.
regulator warningAt least one regulator has publicly warned about this provider.
unlicensedNo active licence that we could verify.
no proof of reservesNo published reserve attestation, or the method is "none".
high leverageMaximum leverage above 50x.
blocks US usersUS residents are excluded by the provider.
tos-only blockCountries are excluded in the terms, but no technical enforcement was observed. The terms still apply to you.
no KYCTrading is possible without identity verification. This usually means weak or no regulation, not extra freedom.
MiCA licensedHolds an active MiCA CASP licence in the EU.
data staleThe scheduled review date has passed, so treat the values with extra caution.

4. Geo-availability, Country Context and known downsides

The Geo-restrictions box shows the enforcement level (none, tos_only, ip_block, kyc_block) and the list of excluded countries. If you set your country in theCountry Context, the profile adds a tag such as "not available in DE" and a red notice whenever the provider's terms exclude your residence. Chapter 38 explainshow exchanges enforce geo-restrictions. We do not publish workarounds.

Known downsides lists documented weaknesses together with their severity: slow support, limited fiat options, past incidents, unclear corporate structure. Every profile has this section by design. If it looks short, check the Sources & verification block and the review date before you trust it.

Exercise: spot three differences

Open /exchanges/kraken/ and/exchanges/example-offshore/ side by side. Write down at least three differences. Compare:

  • the Regulation Score and the Regulation box (which licences, which tier),
  • the listing notice at the top (is there one, and what reason does it give?),
  • the geo tags and the enforcement level,
  • the KYC requirement and the maximum leverage,
  • proof of reserves and the "Known downsides" section.

Then ask yourself: if the offshore profile had a higher Offering Index, would that change anything about the risk to your deposit?

5. When this fails

A profile is a snapshot of verified facts. It is not live monitoring. Exchanges can lose a licence, pause withdrawals or change their country lists between reviews, so watch for the data staletag and the "Next review" date. Self-reported values, such as the cold-storage share, are labelled as such and cannot be audited by us. A missing tag means "not found in our sources". It does not mean "proven absent".

Risk: No score protects your deposit. Even a top-scored, fully licensed exchange can be hacked or fail. Keep only what you actively trade on any exchange and verify the current facts before each deposit.

Knowledge check

  1. Why is the Regulation Score never combined with the Offering Index into one number? (So that low fees or a large coin selection cannot hide a missing or weak licence.)
  2. What is the difference between "Links restricted" and "Info only"? (Links restricted: a B-level deal-breaker such as no licence or a regulator warning, shown with a caution box. Info only: an A-level deal-breaker such as sanctions, fraud or insolvency, with frozen scores and no link.)
  3. A profile shows the "tos-only block" tag for your country. Can you use the exchange? (No. The terms exclude you; technical enforcement is simply missing. Frozen funds and no recourse are the practical risk.)
  4. What does the "no KYC" tag usually tell you about a provider? (It points to weak or no regulation. It is a risk signal, not a feature.)
  5. Why does a missing "hack history" tag not prove that an exchange was never hacked? (Tags reflect our sources at the last review; missing means not found, not proven absent.)