A company within CEX.IO, a cryptocurrency exchange based in the United Kingdom, has received approval from CySEC to operate as a market-making Cyprus investment firm, Finance Magnates has learned.
The new brand, dubbed ‘CEX.IO Broker,’ is intended to provide a regulatory stamp for the company’s business that is mainly focused on digital assets and cryptocurrencies.
The Cypriot licensing requires the firm to adhere to strict financial standards under the MiFID II framework, including the segregation and protection of client funds, full transparency of its business operations and capital adequacy controls.
Operating under the Cysec umbrella allows CEX.IO Broker to leverage its new regulatory profile to expand its services into the European Markets. Further, the group’s operational capability has been substantially enhanced with the Cypriot approval as the company is now authorised to provide investment and professional trading services, including transferable securities, derivatives, and foreign exchange.
“Obtaining the CySEC license was a crucial milestone. Launching a service under this license will provide our users with a regulated platform to work with digital asset-based derivatives. CEX.IO Broker also opens the path for forex traders in Europe to a new industry and asset class. By offering a multitude of services, we provide the opportunity for our users to grow in our very own ecosystem,” Oleksandr Lutskevych, founder and CEO of CEX.IO, stated.
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“At CEX.IO Group, we are committed to eliminating the technological barriers that prevent users from engaging in different cryptocurrency-related activities. The purpose of our products is to act as a bridge into the open financial system. With our CySEC license, we provide regulated services on the newly launched CEX.IO Broker platform, allowing traders to work with digital asset derivatives in a safe and transparent environment,” Oleksandr explained.
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Founded in 2013, CEX.IO classifies itself as a self-regulated venue and is licensed as an authorized electronic money institution (AEMI) under the UK’s FCA. When it started out, CEX.IO was not an exchange but a cloud mining platform.
CEX.IO holds a money service business (MSB) status with the Financial Crimes Enforcement Network (FinCEN), which allows a company to act as a money transmitter in the United States with a stringent independent annual audit.
Since 2015, CEX.IO’s trading services have been available in the US with a growing number of Money Transmitter Licenses under their belt, which is alongside plans to expand to all 50 states.
The UK-based crypto exchange is also hoping to get the official green light to operate in Singapore, having already submitted its application to the island state’s authorities under new legislation passed in January.
Under the act, crypto and blockchain companies are required to first register their business and then apply for a license to operate in the jurisdiction.
CEX.IO Broker is the trade name of CEX Markets Ltd. CEX Markets Ltd. is authorised and regulated by the Cyprus Securities and Exchange Commission license no 381/19.