Coinfloor receives provisional approval for spot exchange from Gibraltar regulator

Coinfloor CEO urges UK government to follow suit by handing FCA powers to regulate cryptocurrency platforms.

Institutional cryptocurrency exchange Coinfloor has received an in-principal approval from the Gibraltar Financial Services Commission for its spot exchange.

Under the Financial Services Distributed Ledger Technologies Providers Regulation 2018, introduced by the Gibraltor regulator in January this year as a DLT framework, Coinfloor’s spot exchange has been authorised to operate as a DLT provider.

The framework was implemented to provide a sustainable and supportive environment for the development of DLT and blockchain projects, particularly in relation to the potential growth of and opportunities presented by cryptocurrencies.

“Global governance and policy development is a critical component in ensuring long-term sustainability and interoperability across the crypto asset and token markets,” said Coinfloor CEO, Obi Nwosu.

“As an industry, it’s important that we work closely with policy makers to help define the appropriate and balanced regulatory frameworks which will promote good practices whilst enabling the crypto asset industry to grow and bring long-term benefits to consumers, businesses and Government, including increased potential for financial inclusion, job creation, and economic investment to the country.”

Nwosu also encouraged the UK government to grant the Financial Conduct Authority similar powers to regulate cryptocurrency platforms in order to increase investor confidence and foster innovation.

In July, Coinfloor announced it will implement machine learning technology for market surveillance on its exchanges from financial services giant Trading Technologies (TT).

The technology, known as TT Score, will be deployed across Coinfloor’s exchanges, including its crypto futures and spot exchange CoinfloorEX, to oversee all market behaviour and identify potentially manipulative activity.