Coinfloor is the longest-established UK cryptocurrency exchange and is now the first company to obtain a distributed ledger (DLT) provider license in Gibraltar, aiming to create a secure and accessible exchange for the investment in and trading of cryptocurrency.
Commenting on the award of the license, Gibraltar’s Minister for Commerce said: “We have championed internationally compliant, robust, and sensible legislation to regulate this revolutionary technology in Gibraltar while simultaneously striving to maintain the conditions that encourage further private sector innovation. This announcement is another positive development which shows that Gibraltar is open for business and ready to work with quality companies to provide a regulated road to market. Our congratulations to the team at Coinfloor on the granting of their DLT licence which is very much part of the next logical step in our journey towards making Gibraltar a world class destination for blockchain companies. The licence approval process has been underpinned by the principles-based regulatory framework for DLT and I believe it will set the standard for customer experience in this space while providing opportunity for innovators to develop further.”
In August of this year, the company had been awarded an “in-principle” approval by Gibraltar’s regulator, the Gibraltar Financial Services Commission. Gibraltar’s regulatory framework has been in place since 1st January 2018, and the thorough process of obtaining approval involves ensuring compliance with the GFSC’s “Nine Principles”. These principles include that the company conducts its business with honesty and integrity, that there is full communication with customers allowing for transparency and for appropriate risk warnings to be made known, that there are strong cyber security and custody procedures in place along with robust fraud prevention systems. Gibraltar was one of the first jurisdictions in the world to regulate business working with DLT, effectively establishing the process of regulating cryptocurrency. Gibraltar now plans to introduce the regulation of Initial Coin Offerings (ICO’s).
CEO and Co-founder Obi Nwosu is a supporter of the development of security, reliability and confidence in crypto through the application of regulation and recently addressed a committee of the UK Government Treasury Select Committee on Digital Assets recommending that Gibraltar is looked at as an example of regulating cryptocurrency, stating: “We have set up Coinfloor Exchange Gibraltar. The reason why is that we were incredibly impressed with Gibraltar’s forward-thinking approach to regulation. We have been working with them for over a year. They have taken a policy around AML and CTF, countering terrorist financing. They have also looked at policies around custodianship of cryptocurrency, treating customers fairly, and they have taken a broader look at the market. This is what I was recommending that the UK should look at as well, as an example.” He will also be speaking at the Finance Magnates conference in London in November.
Nwosu has over 20 years of experience building online marketplaces including QZL and WeeWorld. Coinfloor Commercial Director and Co-Founder, Mark Lamb, was one of the UK’s first bitcoin brokers and listed on the Forbes “30 under 30” list for people in Finance. Coinfloor has attracted support from Transferwise founder, Taavet Hinrikus, and attracted early-tier funding from VC fund, Passion Capital.