Coinfloor, the oldest operational cryptocurrency exchange in the U.K., has become the first company to secure a distributed ledger technology (DLT) license in Gibraltar.
Also Read: 19 Companies Licensed to Operate Crypto Exchanges in Philippine Economic Zone
British Overseas Territory Recognizes
First Offshore Crypto Entity
The London-based crypto exchange, which is backed by Transferwise founder Taavet Hinrikus and venture capital firm Passion Capital, is the first offshore company to gain recognition as a regulated entity under Gibraltar’s flagship legislation for cryptocurrencies and blockchain companies. Under the British overseas territory’s regulatory framework, Coinfloor will be regulated as a DLT provider.
Obi Nwosu, the chief executive officer of Coinfloor, spoke favorably of Gibraltar’s licensing requirements and processes: “What impressed us was that this (legislation) was in the works for a long time. It’s been well thought out, well considered. They are focusing on quality over quantity.”
Nwosu said the company was asked to show it could abide by “nine principles” to obtain the DLT license. The requirements included robust know-your-customer and anti-money laundering policies, in addition to strong cyber-security and custody procedures.
Coinfloor to Downsize Workforce
Earlier this month, it was reported that Coinfloor would lay off most of its roughly 40 employees, citing the prolonged cryptocurrency bear trend as the catalyst for the move. At the time, Nwosu said the company had witnessed “significant change in trade volume across the market,” adding: “Coinfloor is currently undergoing a business restructure to focus on our competitive advantages in the marketplace and to best serve our clients. As part of this restructure, we are making some staff changes and redundancies.”
Nwosu recently described the changes as a normal development. “It’s never desirable to make these changes, but it’s a natural part of the market cycle,” he said. “The market has contracted and you should make appropriate changes to your team … it’s happening across this space.”
Do you think that Coinfloor will be the first of many cryptocurrency exchanges to seek licenses under Gibraltar’s DLT regulations? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Coinfloor
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Author: Samuel Haig