Institutional crypto currency exchange LMAX Digital has received an ‘in-principle’ license as a Distributed Ledger Technology (DLT) provider from the Gibraltar Financial Services Commission (GFSC).
The In-principle license means the LMAX solution complies with the nine regulatory principles which are set out in Gibraltar’s DLT regulations and designed to protect consumers and businesses using digital assets stored or transmitted on distributed ledgers.
These regulatory principles include robust risk management processes, effective corporate governance, high standards of customer care, systems and security controls to combat financial and cybercrime, and adopting standards of honesty and integrity.
Launched in 2018, LMAX Digital claims to be the first cryptocurrency exchange to be established by a regulated FC exchange operator and the only one dedicated to institutional clients. It is based on LMAX Exchange’s technology and was established due to ‘overwhelming’ demand of existing clients looking for credible, efficient and trusted platform for digital currency trading.
LMAX Digital operates under similar rules as the LMAX Exchange, which ensures it has necessary KYC and AML procedures in place.
Gibraltar has implemented strong framework to support the digital currency space. Last year, it released a distributed ledger technology (DLT) regulatory framework to support the development of these types of blockchain services.
LMAX Exchange Group CEO David Mercer said, “LMAX Digital was designed to address the challenges that have hindered institutional growth in the crypto currency market, such as fragmented liquidity and a lack of regulation and institutional grade technology platforms. LMAX Digital has filled the gap in the crypto market by providing institutions with a trading platform they trust, with deep liquidity, security of funds, and high performance, proven technology.
“We believe regulatory input is essential for the growth of the crypto currency market. LMAX Exchange Group has always supported regulatory oversight and we work proactively with regulators to help foster a transparent and trusted marketplace for all market participants.”
The LMAX Digital solution has had strong growth since it launched, having quadrupled its client base since Q2 2018 and increased revenues by 131 per cent.
