Full regulation before the opening of a crypto exchange is a peculiarity. This has been achieved by the Liechtenstein-based crypto-market Blocktrade.com. The company has been authorized by the relevant Financial Market Authority as a member of the European Securities and Markets Authority (ESMA). Thus, the crypto exchange has started fully regulated in the beta test phase.
Forbes reported that the company had been regulated in accordance with MiFID II guidelines. On its website, Blocktrade.com wrote:
“Until now, crypto trading was not available to financial institutions. Blocktrade.com will be the first fully MiFID II regulated entry point for this trading. In addition, the platform is capable of handling more than 1 million trades per second, and this performance continues to improve every day. “
Luka Gubo is the CEO of Blocktrade.com. Gubo added:
“This is the ideal opportunity for regulators across Europe to recognize cryptocurrencies as a new asset class and establish a regulatory framework.”
Only few coins available for trading at the beginning
Initially, Blocktrade.com plans to offer retailers of Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ripple XRP. Towards the end of the year, Crypto Traded Indices, security tokens and tokenized assets will be added. It can be assumed that the stock exchange will be fully operational in September. At the moment, interested parties can only register there.
Many institutional investors consider unregulated crypto exchanges, of which there are over 170, risky. This is mainly due to the lack of transparency. However, Luka Guba believes that fund managers are still keen to invest in cryptocurrencies. So he said:
“If an institutional investor wants to invest in cryptocurrencies, he is currently facing a problem. Where should he send the buy order? There are also many speculative valuations in the area of cryptocurrencies and there is currently no way to reduce volatility. Proper regulation is the only way to mitigate this risk. “
He also said that volatility will decrease somewhat as more and more institutions come to the crypto markets. Especially volatility is what scares off classic investors. He also assumes that one day also Initial Coin Offerings (ICOs) would be traded on the crypto exchange. That will be the case if the technology is available. You also have to regulate the Initial Coin Offerings (ICOs).
Gubo also explained the stock market view of the new crypto exchanges. He said: “They see the other new crypto exchanges as competitors. They violate laws and have a big, unfair advantage, because they do not have to follow any rules. “
It is expected that the approval of more regulated crypto exchanges will have a positive impact on the industry and the price of cryptocurrencies. The same applies to the admission of exchange-traded funds (ETFs) on a Bitcoin basis.
Sources: Blocktrade.com, Forbes, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/erste-vollstaendig-regulierte-bitcoin-boerse-oeffnet-ihre-tore-konzert-fuer-coinbase-und-Binance/
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