Belarus-based Currency.com has received the bespoke license for blockchain companies in Gibraltar using distributed ledger technology. The company is said to carry out trading of about $20 million securities every month through its 5,000 registered users. The company is set to face competition from two other companies that have already received DLT licenses a few months back – Coinfloor and Huobi. Even though Currency.com has already secured licensed from Belarusian authorities, Gibraltar is just another feather to the cap.
Currency.com provides its users with a platform to transact in financial instruments using cryptocurrencies. Even though the company offers its services to most jurisdictions, investors from the US and other FATF-blacklisted countries are banned from using its services. After the announcement, the CEO of Currency.com, Jonathan Squires, said that Gibraltar has a strict protocol for the use of cryptocurrencies, and acquiring the Gibraltar license shows their commitment towards maintaining the strictest of standards, and offering the highest level of security to its investors.
The Gibraltar Financial Services Commission (GFSC) only gives out licenses to those firms, which can prove that they have enough financial resources and secured IT systems. They also need to have the proper infrastructure to prevent money laundering and terrorist financing. The companies that receive the Gibraltar license need to provide guarantees regarding the safety of the funds of the investors. These companies need to be trustworthy.
Even though a lot of people that the rules set by GFSC are quite rigid, but the company believes otherwise. They are quick to adapt to a new type of business activity, business models, and even new products in the market. The company also aims to spread its wings in the financial services market through the blockchain and the crypto startups that are new in the market. It is even more important for them as the UK will soon be leaving the EU.
Currency.com is a regulated tokenized assets platform for trading in a fast and secure way. The platform allows users to purchase and sell popular cryptocurrencies and real-world assets like indices, shares, forex, and others. It received its authorization to start its crypto exchange services by Belarus High Tech Park in the year 2018. The company was created with the sole motive to make crypto investment available to everyone and not just be limited to a few first world countries.
Gibraltar is among the few jurisdictions that provide a regulatory framework for the regulation of companies offering blockchain services. Even though they were already a regulatory board for online gambling businesses, the government allowed it to cover companies in the blockchain industries as well. Since 2014, it started to create a regulatory framework for cryptocurrency exchanges, wallet service providers, and businesses that provide blockchain technology to users for storing or transmitting value assets. Gibraltar’s commitment to innovation and technology and adherence to strict regulatory oversight has made it quite popular among the crypto startups. For many blockchain start-ups, it is the stepping stone to expanding their services in Europe and beyond.