Archax announced today that it has become the first digital securities exchange and custodian in the United Kingdom to be regulated by the Financial Conduct Authority (FCA).
Via the cryptocurrency exchange investors will be able to trade on an FCA-authorised secondary market, providing institutions with a regulated trading venue, which will offer digital securities.
According to the statement released today, Archax has also become the first company to receive crypto-asset registration from the UK regulator, making it a fully compliant Virtual Asset Service Provider (VASP).
Commenting on the announcement, David Lester, Advisor and Non-Executive Director at Archax said in the statement: “In the current global economic climate, providing new efficient ways for small and medium sized businesses to access capital is key.”
“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. The launch of the Archax exchange will help bring the institutional and digital asset communities closer together, and open up a new era for the global financial markets space.”
In particular, Archax has been regulated by the British watchdog as an SME Growth Market, the exchange said. Hence, it will be able to provide new primary channels for capital raising as well as a secondary market for digital instruments to trade.
Archax FCA Authorisation Covers MTF Permissions
Furthermore, the authorisation covers Multilateral Trading Facility permissions (MTF), custody permissions (CASS) and brokerage commissions.
“We have been talking to the FCA for a while and the application process has been a tough journey, but we are pleased to have now achieved our first significant milestone as we prepare to launch the UK’s first FCA regulated digital securities exchange later this year,” added Graham Rodford, CEO at Archax.
“Our technology partners are second to none, we have a pipeline of 35 digital issuances in place, and we are signing up global brokers and market makers ready for go-live. This is an exciting moment for Archax and a great step in the evolution and legitimacy of digital securities globally.”