LedgerX to be the 1st U.S. federally regulated exchange

LedgerX becomes the first U.S. federally regulated exchange and clearing house for digital currency derivatives
25 July 2017   2622
Blockchain

Distributed database that is used to maintain a continuously growing list of records, called blocks

The U.S. Commodity Futures Trading Commission (CFTC) has given permission to the New York-based institutional trading and clearing platform for digital currencies LedgerX to exchange and clear any number of cryptocurrency derivatives.

Bitcoin

Is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen

After three years of work, the company was granted a rare derivatives clearing organization (DCO) license, which allows to clear and custody financial instruments backed by Bitcoin, Ethereum and other blockchain-based cryptocurrencies. In fact, initially, LedgerX anticipates listing one to six-month options contracts for BTC. Other digital currency contracts such as ETH, are expected to follow.

 
Ethereum

Is an open-source blockchain-based distributed computing platform featuring smart contract functionality, which facilitates online contractual agreements 

LedgerX will provide the surveillance and transparency institutional investors require. Eligible participants in the LedgerX venue will include registered broker dealers, banks, futures commission merchants, qualified commodity pool entities and qualified high net worth investors.

We are seeing strong demand from institutions that previously could not participate in the bitcoin market due to compliance restrictions against unregulated venues. In particular, there is a desire for fund managers to hold financial instruments that are not correlated with the broader equity market, and digital currencies meet that need.
 

Paul L. Chou
CEO of LedgerX

Gary DeWaal, of Katten Muchin Rosenman LLP, who assisted LedgerX during its CFTC application process, also commented on the approval claiming that LedgerX’s registration is a historic milestone for derivatives and for digital currencies. To him, "it is equivalent to the launch of currency futures back in 1972 that heralded the beginning of exchange-traded and cleared derivatives based on financial products.” 

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   283

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.