Liechtenstein-based Crypto Assets Exchange LCX has secured approvals from the FMA. To date, the exchange provider has been operating under transitory provisions of the Blockchain Act. The company plans to roll out more products and services in 2021.
While everyone was on Christmas break, LCX has reached another milestone: The Liechtenstein-based crypto exchange has now been granted eight crypto-related licenses in Liechtenstein, enabling it to expand its security-token services, as reported by Coindesk.
According to CEO Monty Metzger, the licenses from the Financial Market Authority Liechtenstein (FMA) make it a regulated crypto exchange, digital asset custody provider, price oracle provider, digital asset compliance provider, smart-contract creator, and token-offering platform. To date, LCX has been operating under the Blockchain Act’s transitory provisions and has worked with the FMA to complete the assessment process.
Eight licenses to provide blockchain and exchange services
According to the FMA register, LCX now holds the following licenses:
- TT Exchange Service Provider
- TT Token Depositary
- TT Key Depositary
- TT Price Service Provider
- TT Identity Service Providers
- Token Generator
- Token Issuer on its own
- Token Issuer on behalf of clients
“We have a long-standing commitment to building a fully regulated, safe, and reliable business while delivering a seamless user experience,” says CEO Metzger. “Being one of the first cryptocurrency platforms to receive the Liechtenstein blockchain licenses is an important milestone. We look forward to rolling out additional compliant and innovative products and services in 2021.”
LCX has continuously expanded its service offering over the past year, and the new licenses enable the company to now also custody and generate security tokens for its clients.
CEO Metzger comments, “If one of the banks wants to have [security token] clients worldwide and wants to go through Liechtenstein, they have to work with one of the regulated token generators. […] We are the only token generator in the region.”
A key player in Liechtenstein’s blockchain and crypto scene
LCX plays a key role for the future of Liechtenstein as a blockchain and cryptocurrency hub in Europe. “LCX Exchange is a new generation of cryptocurrency exchange,” comments Metzger. “2021 will be the year of blockchain innovation, and we see crypto compliance as key to success.”
One key challenge of the blockchain investment sphere today is the lack of regulated trading and exchange venues that adhere to the same regulatory and infrastructure security standards as the traditional finance world. Regulated exchanges are essential especially for institutional investors, who are under much greater regulatory scrutiny than retail investors.
LCX says that it “takes a big leap towards bringing regulated and compliant manner crypto services to the world” with this approval. The company is aiming to offer a full range of services in accordance with the scope and the definitions of the Liechtenstein Blockchain Laws in the future. That sounds as if we can expect more to come from LCX this year. Good news for traders and investors.