Currency.com recently announced that it has been awarded a bespoke license for blockchain firms in Gibraltar. The Belarus- based company claims to have a $20 million monthly turnover on 5,000 registered users.
Rivals already in the market
Coinfloor and Huobi have already received their DLT Licenses from Gibraltar financial services watchdog. The British overseas territory recently created its own crypto regulatory framework. Currency.com also launched its tokenized securities exchange recently and claims to have 5,000 registered users, with over $20 million in monthly turnover.
The platform also allows investors to transact their tokenized financial instruments directly. The payments are made directly in digital currencies. The service will be available to most jurisdictions. However, traders from the US and FATF-backlist nations, which are considered high-risk, will not be allowed to trade on the exchange.
Currency.com CEO Jonathan Squires said, “Gibraltar has been working on financial regulation in this area for many years and has a strict application process for crypto companies. Our Gibraltar license is an important endorsement for the platform and further confirms our adherence to the most stringent standards, providing the highest level of safety and security for our traders.”
Gibraltar DLT License
The Gibraltar Financial Services Commission (GFSC) requires all licensed firms to demonstrates that they have ample financial resources and controls alongside robust IT systems. They would help in complying with the anti-money laundering and terrorist financing rules. When engaging in a business approved by the GFSC, the companies have to offer several guarantees regarding the safety of their funds. They also have to ensure the trustworthiness of the service with which they are working.
The regulatory body suggests that their rules are not rigid. They intend to create a flexible, adaptive approach that is required in the case of new business activities, business models and products. Gibraltar is looking to boost up its financial services market with crypto and blockchain startups. This would be important for the jurisdiction as the UK will be leaving the EU this year.