LMAX Digital, the institutional crypto currency exchange run by the LMAX Exchange Group, has received a positive in-principle decision from the Gibraltar Financial Services Commission (GFSC), on its application for license as a distributed ledger technology (DLT) provider.

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Image: LMAX wins in-principle regulatory approval from GFSC. Photo: Courtesy of WorldSpectrum/Pixabay.

Based on technology from LMAX Exchange, LMAX Digital enables worldwide institutions to acquire, trade and hold the most liquid digital assets, Bitcoin, Ethereum, Litecoin, Bitcoin Cash and XRP, safely and securely.

The in-principle decision is the last stage of the license authorization process, where a company requires to satisfy the GFSC with respect to one or more conditions before securing a license.

Launched in May 2018, LMAX Digital is claimed to be the first crypto currency exchange established by a regulated FX exchange operator and the only deliverable crypto currency exchange that works only for institutional clients.

LMAX Digital is governed by same rules and principles as LMAX Exchange Group’s FCA regulated entities, making sure that the exchange operates with security, compliance and anti-money laundering policies and procedures.

The in-principle decision received from the GFSC is an indication that LMAX Digital complies with nine regulatory principles set out in Gibraltar’s DLT regulations, designed to protect consumers and businesses using digital assets stored or transmitted on distributed ledgers.

The regulatory principles include robust risk management processes, effective corporate governance, high standards of customer care, systems and security controls to combat financial and cybercrime, and adopting standards of honesty and integrity.

LMAX Exchange Group CEO David Mercer said: “LMAX Digital was designed to address the challenges that have hindered institutional growth in the crypto currency market, such as fragmented liquidity and a lack of regulation and institutional grade technology platforms. LMAX Digital has filled the gap in the crypto market by providing institutions with a trading platform they trust, with deep liquidity, security of funds, and high performance, proven technology.

“We believe regulatory input is essential for the growth of the crypto currency market. LMAX Exchange Group has always supported regulatory oversight and we work proactively with regulators to help foster a transparent and trusted marketplace for all market participants.”

LMAX Exchange Group operates various institutional FX trading venues, which combined have traded more than $12 trillion to date.