Gibraltar’s financial services watchdog has awarded European cryptocurrency exchange Covesting its bespoke license for blockchain firms using distributed ledger technology. The move comes a few days after UK-based Coinfloor received Gibraltar’s first DLT Licence since the British overseas territory instituted its crypto regulatory framework.
Gibraltar Financial Services Commission (GFSC) requires licensed firms to demonstrate it has adequate financial resources, IT systems, and controls to comply with anti-money laundering and terrorist financing rules.
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As such, engaging in business with a company approved by the GFSC offers clients several guarantees regarding the safety of their funds, and the trustworthiness of the service with which they are working.
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With this in mind, the regulatory body makes a point that these are not rigid rules though, as “a flexible, adaptive approach is required in the case of novel business activities, products, and business models.”
Attracting blockchain startups is seen as one way of bolstering Gibraltar’s thriving financial services industry after the self-governing territory, along with the UK, will leave the EU next year.
Dmitrij Pruglo, Covesting’s founder and CEO, said receiving a DLT Providers license is a huge milestone for his company and the crypto community as a whole.
Covesting allows everyday investors to search and compare the performance of hundreds of proven cryptocurrency traders and mirror their trades automatically. Simultaneously, the Covesting platform helps investing talents bring their results to light by competing with other traders in an equally fair environment.
Covesting was initially started by Dmitrij Pruglo, as well as several other ex-Saxo Bank managers who collectively boast an extensive background in FX, equity, and derivatives trading. Their platform aims to bring ordinary investors who do not have the time or tech knowledge to invest in cryptocurrencies, facilitating the ability to invest intelligently in a booming new market.
“To establish a new standard for crypto exchanges, to work in a regulated environment, to use the best practices, and to set a new industry benchmark are the goals we defined for ourselves at the very beginning of our journey. We are happy to be incorporated and licensed in Gibraltar, a jurisdiction in which the industry is supported by the government and service providers,” Pruglo said.