Quedex Becomes First Regulated Crypto Derivatives Exchange
Quedex, a crypto-centric futures and options exchange based out of Gibraltar, today announced that it was granted a Distributed Ledger Technology (DLT) Providers licence for trading of cryptocurrency derivatives and for custody of cryptocurrencies by the Gibraltar Financial Services Commission (GFSC) making it the first regulated entity of its kind globally. The DLT licence follows a 15 month-long process in which Quedex, advised by PRT Lawyers, worked together with the Gibraltar authorities in order to meet all the conditions required.
Quedex offers its users, consisting of institutional investors, miners, hedgers and active traders, the opportunity to trade in futures and options contracts on crypto assets on a fully-fledged, transparent and secure financial platform. Quedex’s DLT licence means that there is now a way to hedge against cryptocurrency volatility in a regulated environment: an important step in mainstreaming crypto and making it more attractive to professional, corporate and institutional investors.
Quedex is leading a new generation of companies that have tasked themselves with building ‘layer two’ of the crypto financial infrastructure.
Wiktor Gromniak, CEO and co-founder of Quedex said: ‘In order for the crypto industry to mature and to welcome more institutional investors into our tent it is of the essence that we create transparent financial markets and develop sophisticated financial products, such as futures and options. Being licensed by a very well respected and forward thinking jurisdiction like Gibraltar is a landmark moment for this industry in general and Quedex specifically. We are very proud.’
Quedex’ DLT licence means it will be compliant with the nine-core principles central to Gibraltar’s DLT regulatory framework all designed to protect consumers and businesses using digital assets. Clients will enjoy far greater security and more transparency in a traditionally opaque industry.
Gibraltar’s Minister for Commerce, The Hon Albert Isola MP, commented: ‘From early on in the process Quedex has shown admirable commitment to Gibraltar’s principles-based approach to regulation and I am pleased that they will join the growing group of licensed firms operating from Gibraltar in this evolving space. They form part of a strong line up of DLT licensed companies who will help further develop crypto into a maturing and sustainable industry and demonstrate that Gibraltar is leading the way in this industry.’
Industry experts will help shape discussions regarding standardisation in crypto-markets.
The letter noted the importance of common digital standards.
CME's launch of crypto futures has attracted new institutional participants.
The majority of crypto-assets remain unregulated in the EU.
The regime is for existing cryptoasset businesses which applied for registration before 16 December 2020.