ZUBR, a digital asset derivatives exchange, announced today it has received an in-principle decision from the Gibraltar Financial Services Commission (GFSC) to grant the firm authorization as a Distributed Ledger Technology (DLT) provider, one of the first European digital derivatives exchanges that will become regulated.
According to ZUBR, the in-principle approval is the beginning of the final stage of the license authorization process and ensures that ZUBR shall be, by the time the license is issued, compliant with the nine regulatory principles set out in Gibraltar’s DLT regulations, designed to protect consumers and businesses using digital assets stored or transmitted on distributed ledgers.
These regulatory principles include setting up robust risk management processes, effective corporate governance, high standards of customer care, systems and security controls preventing criminal activity, and abiding by the paramount standard of honesty and integrity.
Introduced in January 2018, Gibraltar’s DLT legislation was the world’s first purpose-built regulatory framework for businesses using blockchain or another DLT.
ZUBR said it would continue to fulfill the in-principle conditions requested by GFSC and work with the GFSC closely to complete this process, upon which ZUBR will receive its license.
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ZUBR’s client-base includes proprietary trading firms and individuals that trade in a wide range of cryptocurrency markets, using arbitrage and other latency-sensitive strategies across multiple trading venues.
The firm noted that since its launch, amid unprecedented volatility, the platform has helped its clients to access price data and execute market orders with the best possible speed, while also reducing the risks associated with failures and connectivity outages.
ZUBR said that the company should be based in Gibraltar, with its infrastructure based in London. It has already seen a cumulative trading volume, as a self-regulated entity, of close to US$100million since it commenced its activity in March, outside of Gibraltar.
“This is a great step for ZUBR. A lot of time and resource has been invested to ensure our product goes above and beyond client expectation, from being the first live digital derivatives platform to have been successfully tested by ex-LSE Group testing firm Exactpro, to this licence process that will position us as one of the first regulated digital derivatives exchanges outside of the US,” Ilgar Alekperov, CEO of ZUBR, said.
He added that since inception, the firm has always conducted its business as if it was a traditional financial services offering, but having a license in a robust European jurisdiction was always the next step.
“Gibraltar’s DLT framework provides us with regulatory certainty when dealing with new asset classes, providing our clients with assurance that ZUBR is the go-to digital assets derivatives exchange,” Alekperov concluded.