Archax has become the UK's first digital securities exchange and custodian to be regulated by the Financial Conduct Authority (FCA), after the watchdog approved the London-based company's application yesterday.
Tha FCA's decision means Archax becomes the UK's first Virtual Asset Service Provider (VASP) under the FCA's crypto asset registration.
The move makes it possible for investors in digital tokens around the world to trade on a secondary listed exchange authorised by an internationally-recognised regulator.
Digital securities list real-world assets, including funds, private equity and debt, and tokenise them using blockchain ledger technology, which is also used for cryptocurrencies.
Graham Rodford, CEO of Archax, said: "Digitally native assets are not just about new financial instruments. They will also revolutionise all existing traditional financial markets in time too. They bring huge efficiencies from activities happening ‘on chain', which will particularly benefit the post-trade space."
Rodford added: "Perhaps we don't fit into some people's view of what blockchain could be, but we would argue that regulation is there for a reason, and we want to embrace the technology but do it within the regulation, and we think it moves forward faster once you do that."
"There's probably never been a time, certainly in my lifetime, where SMEs need more access to capital than ever, so actually perhaps the timing of our venue couldn't be better."
David Lester, chief strategy officer at of the London Stock Exchange and non-executive director at Archax, commented: "Blockchain and tokenisation are innovations that can empower more frictionless and transparent markets which, combined with an FCA regulated exchange like Archax, can deliver what capital providers, business leaders, and founders now really need."
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by Tanya at http://www.ifajobs.net
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