The Gibraltar Financial Services Commission (GFSC) made an in-principle decision to grant London-based its authorization as a distributed-ledger technology (DLT) provider.
The decision comes as the firm completes its platform testing period with other UK applicants, including most recently , the cryptocurrency arm of FX trading business LMAX Exchange Group.
An “in-principle” decision is the first stage of the full authorization process whereby the applicant needs to satisfy the GFSC on one or more requirements in order to obtain a licence.
CEX.IO said that it will continue to work with the regulators as it strives to be granted a full DLT provider license, and as it looks to to operate on as a regulated provider in all territories it currently has a presence in.
Nine regulatory principles
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. The in-principle decision it issues is an indication that the applicant complies with nine regulatory principles set out in Gibraltar’s DLT regulations.
Founded in 2013, CEX.io classifies itself as a self-regulated venue and is licensed as a Money Services Business (MSB) since the only regulation relevant to such businesses in the UK is a European Union law – the fifth. When it started out, CEX.io wasn’t an exchange but a cloud mining platform.
In a statement released to the media, CEX.IO CEO Oleksandr Lutskevych said: “Gibraltar is one of the first crypto-friendly jurisdictions to license crypto-related businesses. We’re proud to be among the very few crypto platforms to meet regulatory standards and even surpass them. We interact with different regulators globally, and I find the GFSC approach one of the most thoughtful and relevant to dynamic crypto industries. This approach offers flexibility and opens room for healthy creativity and smart regulation.”
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