Binance LCX can now provide its services in a fully regulated manner as its partner LCX has got the license. LCX also plans to obtain more licenses.
In this era of regulatory uncertainty if an exchange can get its services licensed in any country, it’s indeed a big deal. Binance, fortunately, has had this privilege in a few countries. And now recently it has received the same privilege in Liechtenstein as well. Binance LCX, the fiat-to-crypto exchange it had launched in partnership with LCX, has now been granted a licensed by the government to provide the crypto trading services for payment as well as utility tokens.
The news was announced by LCX on Tuesday. In the announcement LCX said:
“LCX has been granted a business license of the Liechtenstein Ministry of Economic Affairs to conduct its business in Liechtenstein (Gewerbebewilligung). 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.
Speaking further on the matter the same LCX representative said that as a regulated exchange they will apply the highest standards of technology to fulfill the KYC and AML requirements of regulators. He also revealed that LCX has increased its nominal capital from 100,000 CHF to 1,000,000 CHF so it can apply for additional licenses. One such license is Financial Market Authority (FMA) license, which will allow LCX to offer security token trading and other regulated services on its platform. The exchange representative stressed in his comments to Bitcoin Magazine that they want to offer security token trading on their platform.
LCX also wants to offer a custodian service in future, called LCX Vault. It also wants to offer a trading terminal that will integrate the services of many major exchanges (i.e. Binance, Bittrex, Coinbase, Poloniex etc). Given below is the kind of architecture that company wants to develop for its services:
Speaking about the launch of LCX Terminal the representative said:
“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.”
Let’s see when it goes live.