LCX Now Licensed to Provide Crypto Trading Services in Liechtenstein
Liechtenstein cryptocurrency exchange LCX has been granted a license to provide crypto trading services for utility and payment tokens. The exchange will be offering four main crypto services including a custody service and a fiat-to-crypto exchange in partnership with Binance.
Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations
A Regulated Exchange
LCX announced on Tuesday that it has been granted “a business license of the Liechtenstein Ministry of Economic Affairs to conduct its business in Liechtenstein (Gewerbebewilligung).”
An LCX representative told news.Bitcoin.com:
With this license, we got the permission from the regulator to provide crypto exchange trading services for utility and payment tokens. So, we can offer an exchange to investors, to safely trade utility and payment coins (stable coins for example), that is approved by the regulator.
The representative added that LCX can now offer “services that other crypto exchanges offer … in a regulatory compliant manner.” As a regulated exchange, LCX says that it will apply the “highest technology standards for KYC [know-your-customer] and AML [anti-money laundering] to safeguard fulfillment of all regulatory requirements for AML and KYC.”
The Liechtenstein Blockchain Act defines three different types of tokens: utility, payment, and security.
“We also want to offer security token trading to our clients,” he emphasized, noting that LCX has increased its nominal capital from 100,000 CHF (~$100,400) to 1,000,000 CHF in order to apply for additional licenses, such as the Financial Market Authority (Fma) license, to be able to trade security tokens and offer other regulated services.
The company plans to offer four key products. One is a trading platform for security tokens and other cryptoassets. The second is a crypto custody service called LCX Vault.
The third is called LCX Terminal which integrates the APIs of major exchanges — such as Binance, Bittrex, Coinbase, Poloniex, and LCX’s own exchange — into a single trading desk. This product recently entered the closed-beta phase. The company described it as “a trading desk for crypto assets equipped with portfolio management, analytics platform, auto trading functionality and audit reporting — [an] integration of major exchanges.”
The fourth is a fiat-to-crypto exchange unveiled in August in partnership with Binance. This exchange will offer the trading of Swiss francs and euros against major cryptocurrencies.
The LCX representative explained to news.Bitcoin.com:
The moment we decide we’re ready to integrate our exchange into the terminal we can go public with this product … All other products are in development and will be announced and made public in the near future.
Furthermore, he noted that LCX’s exchange services “can be offered in a global manner,” adding that “we will be setting new standards in terms of KYC and AML, which every client of LCX should pass.”
What do you think of LCX’s plans to provide crypto-related services? Let us know in the comments section below.
Images courtesy of Shutterstock and LCX.
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