CEX.IO, a popular bitcoin and cryptocurrency exchange, announced today that the company has received “in-principle” status for the Distributed Ledger Technology (DLT) license issued by the Gibraltar Financial Services Commission (GFSC). This means that it is currently at the beginning of the final stage in the authorization process. To receive the license, it is essential to prove that all the procedures within the company satisfy the final GFSC conditions.
Gibraltar, the issuer of the DLT license, is one of the first crypto-friendly regulators for licensing businesses dealing with cryptocurrencies. The regulator thoroughly examines the procedures of companies that apply for regulation. Only after rigorous checks do they provide licenses to applicants.
Companies seeking regulatory approval have to prove that their corporate governance and risk management, protection of client assets, and financial crime prevention practices are in line with tough regulatory standards. The CEX.IO team says that it is “proud that its procedures have successfully passed all examinations and in some aspects have even surpassed the regulatory standards.”
CEX.IO and the regulatory sphere
Since CEX.IO was established, it has been a self-regulated cryptocurrency exchange following industry best practices. In addition to a set of internal procedures and rules, the company has also successfully worked with external regulators. In 2015, CEX.IO registered as an MSB (Money Services Business) with FinCEN in the United States.
Currently, the company is cooperating with regulators in various jurisdictions, including Gibraltar, Cyprus, and the UK. In doing so, the CEX.IO team is trying to increase awareness of the specifics of cryptocurrency and blockchain regulation and thus help the cryptocurrency sphere become more transparent.