Ibinex, a New York-based provider of institutional white-label solutions for exchanges, and cryptocurrency trading software, has been awarded a license to operate in Estonia. The newly acquired permit compliments the firm’s membership in the Financial Commission since August 2017.
The Estonian license enables companies to provide a variety of services related to exchanging cryptocurrencies. The framework allows exchanging fiat to crypto, crypto to fiat, and crypto to crypto.
According to the CEO of the firm, Simon Grunfeld the Framework also governs providers of virtual currency wallet services. Ibinex will deliver hot and cold wallet (custodial) services within the regulatory framework. The company generates unique security keys for clients or keeps the clients’ encrypted keys, for safeguarding, storing and transferring virtual currencies.
The CEO of Ibinex, Simon Grunfeld, elaborated on the company’s move: “This is the first of many licenses and registrations to come; Ibinex is excited to be one of the first licensed exchanges to be in accordance with Estonian legislation.”
“We’re seeing more formations of regulatory rulings for cryptos in the EU region, and due to this progressive stance, companies like ours can find a compliant framework, from which to operate under,” he explained.
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Estonia is a likely candidate to become the next destination hub. Despite its small size and population of approximately 1.3 million people, it has a thriving, modern economy; Skype was born there, and Estonia was the first European nation to propose the idea of a national cryptocurrency.
In December 2017 the government partnered with an Ethereum-based company to launch an initial coin offering, expecting that 30 million euros would be raised. The plan was criticised by Mario Draghi, then-president of the EU central bank, but the creator of estcoin, Kaspar Korjus, said that it was never intended to replace the euro but was rather “proposed as a way to raise money and support for the development of our digital nation from more people around the world.”
However, earlier this month the government spokeswoman debunked the plan. Triin Oppi, the country’s media adviser, told Bloomberg that the plans “never existed,” clarifying that the e-residency programme (of which Korjus is managing director) had done no more than initiate a discussion.
Nonetheless, Estonia is eager to present itself as a haven for cryptocurrency. Korjus published a July 2017 article in Medium entitled “Welcome to the blockchain nation,” and Oppi wrote in an email to CNBC: “We strongly believe in the potential of blockchain technology as a tool for economic development, empowerment and inclusion and we notice that several private and public institutions worldwide are also exploring its opportunities.”