Archax Gets FCA Authorisation to Operate as Digital Securities Exchange

Archax announced today that it has become the first digital securities exchange and custodian in the United Kingdom to be regulated by the Financial Conduct Authority (FCA).

Via the cryptocurrency exchange investors will be able to trade on an FCA-authorised secondary market, providing institutions with a regulated trading venue, which will offer digital securities.

According to the statement released today, Archax has also become the first company to receive crypto-asset registration from the UK regulator, making it a fully compliant Virtual Asset Service Provider (VASP).

Commenting on the announcement, David Lester, Advisor and Non-Executive Director at Archax said in the statement: "In the current global economic climate, providing new efficient ways for small and medium sized businesses to access capital is key."

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“Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term and tokenisation are innovations that can empower more frictionless and transparent markets which, combined with an FCA regulated exchange like Archax, can deliver what capital providers, business leaders and founders now really need. The launch of the Archax exchange will help bring the institutional and digital asset communities closer together, and open up a new era for the global financial markets space."

In particular, Archax has been regulated by the British watchdog as an SME Growth Market, the exchange said. Hence, it will be able to provide new primary channels for capital raising as well as a secondary market for digital instruments to trade.

Archax FCA Authorisation Covers MTF Permissions

Furthermore, the authorisation covers Multilateral Trading Facility permissions (MTF), custody permissions (CASS) and brokerage commissions.

"We have been talking to the FCA for a while and the application process has been a tough journey, but we are pleased to have now achieved our first significant milestone as we prepare to launch the UK's first FCA regulated digital securities exchange later this year,” added Graham Rodford, CEO at Archax.

“Our technology partners are second to none, we have a pipeline of 35 digital issuances in place, and we are signing up global brokers and Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term ready for go-live. This is an exciting moment for Archax and a great step in the evolution and legitimacy of digital securities globally."