The Ministry of Economic Affairs in Liechtenstein has granted the Liechtenstein Cryptocurrency Exchange (LCX) a business license allowing it to provide virtual currency trading services for payment tokens.

According to an LCX representative, the license will enable the exchange to offer a platform where investors can safely trade in tokens that are already approved by the financial watchdog in the country. i.e. ‘services that other exchanges offer… in a regulatory compliant manner.’

Users Will Undergo Thorough KYC and AML Procedures

To abide by the law, users on the platform will undergo thorough Know Your Customer (KYC) and Anti-money Laundering (AML) procedures as required by the regulator.

The Liechtenstein Cryptocurrency Exchange has multiplied its nominal capital to 1 million Swiss francs from its previous 100 thousand Swiss francs. The increase in its nominal capital is meant to help LCX seek additional recognition from other regulators, e.g. the FMA (Financial Markets Authority) which will enable LCX to trade security tokens.

The exchange will have four divisions, i.e. LCX Exchange, LCX Vault, LCX Terminal, and Binance LCX.

The LCX Exchange will provide investors with a platform to trade crypto assets while the LCX Vault will be an ‘institutional grade’ crypto storage service that will employ dedicated hardware security.

The LCX Terminal will be a trading desk supporting other exchanges plus auto trading capabilities. LCX Terminal entered a closed beta operation on November 23.

The terminal will also provide institutional investors with functions such as:

“Record keeping of transaction history and cost basis information for tax reporting and general auditing. Tools for deep analytics, such as for determining the rate of ROI … and comprehensive reports can be automatically generated with the touch of a button.”

The fourth division, Binance LCX, will power a fiat to cryptocurrency exchange through joint efforts between LCX and Binance. The fiat to crypto trading will involve major fiat and virtual currencies.

LCX, through a representative, noted that “other products are in development and will be announced and made public in the near future.”

The Liechtenstein Cryptocurrency Exchange is striving to provide an ecosystem for professional crypto asset investors using the blockchain technology.