Different cryptocurrency exchanges have been working in order to offer fully regulated services, but it’s proven to be more difficult to do that. This time, the first regulated crypto exchange has launched its beta testing operations in preparation of launching this first of kind milestone.
First Fully Regulated Crypto Exchange Starts Beta Testing
An important step for the cryptocurrency world has been accomplished by Blocktrade.com, an exchange that will be regulated under the MiFID II framework. At the moment, the company is still waiting for a final approval by the Financial Market Authority.
The information has been released by Forbes in a report that explains why cryptocurrency trading activities haven’t been available in a regulated way for financial institutions. The news has been hinted at previously as European regulators have talked about what to do with virtual currencies like Bitcoin.
The report reads as follows:
“Until now, crypto trading has been unavailable to financial institutions. Blocktrade.com will be the first trading venue, fully regulated under MiFID II framework. Furthermore, the platform is able to process more than 1 million trades per second and the performance is being improved every day.”
Luka Gubo, CEO of Blocktrade, said that this is an ideal project for European regulators to recognize virtual currencies as a new asset class and create a new legal framework around them.
The platform will be offering different cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and Ripple (XRP). At the same time, the company wants to offer crypto traded indices, security tokens, and tokenized assets—all as a regulated crypto exchange.
The platform is expected to be launched in September and registration is already open for new users.
With a regulated crypto exchange, institutional investors may feel more comfortable placing their funds in the market. There is currently a lack of platforms for institutional and wealthy investors to put fiat currency in in a way where they can feel protected as they might normally invest.
“If an institutional investor wants to invest in cryptocurrencies, they currently have a problem. Where do you send the order to buy? There’s a lot of speculative valuing in cryptocurrencies, so there’s currently no way to lower the volatility – proper regulation is the only way to lower that risk,” commented Gubo.
With more participation from institutional investors, volatility in the market may be reduced, liquidity could increase and the market should become more mature. If a Bitcoin ETF is approved by the U.S. Securities and Exchange Commission (SEC) in August or September, the decision could have a very important impact on cryptocurrency prices, as this would signal another step toward regulated crypto exchanges across the globe. For now, the European decision is a big step forward for regulation within crypto investment.