UK’s first cryptocurrency exchange, Coinfloor, adds another feather to its cap—it’s become the first crypto exchange to be licensed by Gibraltar’s groundbreaking blockchain legislation.
According to a report in the Financial Times, Coinfloor will be regulated as a distributed ledger technology (DLT) provider under the new license. Coinfloor CEO Obi Nwosu was quoted by the news outlet saying Coinfloor had to undergo various processes before it secured the Gibraltar license.
According to Nwosu, the crypto company was tested on nine principles aimed at determining whether the exchange has sufficient anti-money laundering (AML), and Know Your Customer (KYC) protections in place. Nwosu said Coinfloor had to prove that their security system could stand any kind of cyber attacks that have plagued the cryptocurrency exchange industry over the years.
Nwosu also stated that the licensing process under Gibraltar’s new legislation impressed him, telling FT: “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.”
Gibraltar has been a haven for many virtual casinos because it offers low taxes for business based in the region. Recently, the British Overseas Territory introduced new rules specifically applying to the blockchain, which it hopes, will increase the success of blockchain-based companies in the region. This legislation was the first of its kind in Europe.
With this and more changes, Gibraltar seems to be creating a crypto-friendly environment like that of Malta. However, since UK is set to leave the EU next spring, there are many uncertainties and the move might affect Gibraltar’s dream of becoming a crypto and blockchain hub.
The new license comes as good news to Coinfloor, which recently laid off around 40 employees as part of the company’s restructuring process. The exchange, which was founded in 2013, made the decision at a time when there were increased difficulties for businesses in the cryptocurrency space following the bear market conditions.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.