LMAX Digital Acquires Gibraltar DLT License

The cryptocurrency-focused subsidiary of LMAX Exchange Group, LMAX Digital has just announced that the company has been granted a DLT (Distributed Ledger Technologies) Provider License from the Gibraltar Financial Services Commission (GFSC). The news comes a bit over two weeks after the 'in principle' approval.

The news comes as the institutional-grade infrastructure for trading Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term continues to be actively developed. LMAX Digital was launched in the middle of last year, with the company pioneering with the first cryptocurrency exchange established by a regulated FX exchange operator.

At the time, the exchange was the only deliverable cryptocurrency exchange oriented towards institutional clients. Since then, the trend continued with the launch of several new market players in the space. Overall, the past year has been actively dedicated by several market players to build the infrastructure for the next phase of the cryptocurrency bull market.

LMAX Digital is based on the proprietary technology of the LMAX Exchange. The company developed its infrastructure for the massive flows in the global FX market and scaling it for the cryptocurrency space was the next logical step when the company entered the space in May last year.

Institutional Crypto Demand Increasing

With demand from institutional clients who are interested in crypto increasing, the company saw an opportunity to leverage its experience from the FX market and deliver a scalable product that is in line with the demands of the institutional market.

Commenting on the news, the CEO of LMAX Exchange group, David Mercer said: “LMAX Digital was created to fill the gap in the crypto market by providing institutions with a trading platform they can trust, with deep Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, security of funds, and high performance, proven technology.”

“LMAX Exchange Group has always supported regulatory oversight and we always work proactively with regulators to help foster a transparent and trusted marketplace for all market participants. We are pleased that our efforts to create a more transparent and secure marketplace have been recognized by the GFSC,” elaborated Mercer.

The certification on the part of the GFSC confirms that LMAX Digital is compliant with a set of nine regulatory principles set out in Gibraltar’s DLT regulatory framework.

Among those are 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.

“The Gibraltar regulator has acknowledged our role in further diversifying institutional currency markets and we look forward to working alongside them and other regulators to help improve understanding of the cryptocurrency market,” said the Head of LMAX Digital, Jenna Wright.