CEX.IO Exchange Secures DLT Licence in Gibraltar

Just one week after CEX.IO announced that it had secured Money Transmitter Licenses (MTLs) in the United States, the cryptocurrency exchange revealed this Wednesday that it has received a Distributed Ledger Technology (DLT) license in Gibraltar.

To secure the license, which was issued by the Gibraltar Financial Services Commission (GFSC), CEX.IO had to satisfy the regulator’s requirements based on the Nine Regulator Principles.

These include effective corporate governance arrangements and risk management, financial crime prevention practices, advanced security systems and protocols, protection of customer assets, and adopting standards of honesty and integrity.

Gibraltar is quickly establishing itself as a supportive jurisdiction for Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. In April, LMAX Digital, the institutional crypto exchange of the LMAX Group, secured a license in the region, as Finance Magnates reported.

Commenting on the license, Oleksandr Lutskevych, CEO of CEX.IO, said: “GFCS was one of the first regulatory bodies to offer such licence to crypto businesses. And CEX.IO was among the first cryptocurrency exchanges in Europe to implement the highest standards of regulatory procedures and compliance. We’re proud that those accomplishments allowed us to obtain a DLT licence.”

In order to secure the license, the crypto exchange sought the guidance of Hassans International Law Firm’s fintech team. The company also had an evaluation conducted on its internal processes and procedures.

“We see this licence as one more proof that CEX.IO is a reliable and secure platform for customers who want to engage in the digital economy in a transparent and regulated way,” added Lutskevych.

“Also, this status illustrates that we are ready to meet any regulatory expectations which will be set by the forthcoming implementing of the 5th Anti-Money Laundering Directive in 2020 in the EU.”

CEX.IO goes legit in the US

Last week, the crypto exchange revealed that it had secured MTL licenses in nine states, including Iowa, Kansas, New Mexico, Oklahoma, South Dakota, West Virginia, Maryland, Alaska, and New Hampshire.

Back in 2015, CEX.IO received a money service business (MSB) status with the Financial Crimes Enforcement Network (FinCEN). This allows a company to act as a money transmitter in the United States with the stringent independent annual audit.

However, the service was restricted to residents in states where MTLs are not required. This means that 28 US states and territories were excluded. However, with the MTL, CEX.IO can now serve clients in these states, with plans to expand to all 50 states.