Gibraltar-based blockchain start-up, Covesting International Ltd, is celebrating the award of its license under the Gibraltar Financial Services Commission’s DLT Regulations. This makes the company one of the world’s first cryptocurrency exchanges to achieve a license under a robust regulatory regime. Covesting is now one step closer to achieving its aim of providing a compliant, secure and transparent cryptocurrency exchange platform. Only a few days prior to the announcement, the GFSC had made public its award of a DLT provider’s license to the UK-based, Coinfloor.
CEO and Co-founder, Dmitrij Pruglo, expressed his delight at receiving the license, saying that this was an important milestone in Covesting’s roadmap to the launch of their project. It also validated the firm’s mission to provide a cryptocurrency exchange platform that sets the benchmark in offering solutions to the problems besetting the world of cryptocurrency, including those of exchange security risk.
Covesting sought out Gibraltar as a jurisdiction in which to establish their cryptocurrency exchange platform specifically because of Gibraltar’s thorough and robust regulatory system. The process of regulation required time and a good deal of effort from Covesting’s team. Gibraltar’s regulator closely scrutinised all aspects of the business, including its systems of transparency and accountability. The work involved included ensuring that all internal processes met the regulatory standards and ensuring that the company had implemented the highest standard of cybersecurity systems available. In accordance with the GFSC’s ‘nine principles of regulation’, Covesting also had to prove that the business is conducted with honesty and integrity, and that appropriate anti-money laundering and KYC procedures were in place.
Throughout the process, Covesting found ready and expert support from a range of Gibraltar’s professional services, and have put all the necessary measures in place to achieve regulation. Quoted in Covesting’s website, the company’s COO, Tim Voronin, says: “The GFSC has a high regarded reputation as a global regulator, and they would never do anything to risk their reputation. That is why they only offer licenses to companies that fully meet their high standards. For this reason, we are incredibly proud that we received DLT Providers License and would like to offer a huge thank you to all the team and community members that have helped us to fulfill our goal.”