On October 17th, Blocktrade.com announced the launch of its crypto asset trading facility aiming to become the first European trading exchange that meets regulatory criteria. The platform is fully operational, and the exchange is currently in the process of acquiring a trading facility license under the MiFID II requirements. It currently offers 12 trading pairs in 28 countries.
What is the Blocktrade.com platform?
Blocktrade.com is a crypto trading platform for both institutional and regular investors. They are working closely with regulators and seeking approval from the Financial Markets Authority (FMA). If approved, they will be compliant with the MiFID II requirements, enticing institutional investment on board. Blocktrade.com is based in Liechtenstein and claims to be the biggest crypto facility in the area aside from Binance LCX.
The platform is capable of handling one million trades per second and offers institutional grade investment for brokerages, mutual funds, retail clients, algorithmic and high-frequency traders. These clients have all had issues with the current exchanges. The existing cryptocurrency exchanges are not orientated towards large clients who require instant and sophisticated trades. In terms of security, user data on the platform is protected under the Federal Data Protection Act (DPA) and the Swiss Federal Data Protection Ordinance (DPO). Internal and External security measures are regularly audited.
Regulated exchanges could serve to bring cryptocurrencies one step closer to mainstream adoption. The line between ‘classical’ fiat financial products and crypto-derived assets is becoming more blurred. Additionally, more institutions and investors have expressed interest in crypto assets, but unfortunately, they do not have an avenue to proceed further with the current infrastructure. Existing exchanges have nowhere near the functionality to cater to the needs of institutions and high-frequency traders.
The race for regulatory compliance
Blocktrade.com is not the only platform seeking to achieve full regulatory compliance in Europe. ETERBASE is another crypto exchange facility built around the concept of fast and secure transfers that are completely transparent and in line with all regulatory requirements. ETERBASE have previously obtained a regulatory assessment from the Liechtenstein FMA, who have decided not to regulate ETERBASE at the current time. In the USA, Coinbase is also working with the SEC and FINRA to comply with existing regulations and to operate as a registered broker-dealer. The total crypto asset market stands at around USD 210 Billion according to Coinmarketcap, though it has the potential for further growth.
While there has been much talk of decentralized exchanges (DEXs), institutional investment is going to veer towards facilities that have no legal ambiguity, and the race for crypto exchange compliance is well underway.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.