The rapprochement between traditional finance and the crypto sphere is progressing day by day, for example, the Archax platform has just become the first digital asset exchange in the UK to be regulated by the Financial Conduct Authority (FCA).
Archax is certified by the FCA
In a press release issued on August 19, Archax announced the UK FCA’s approval to recognize the platform as a Digital Asset Service Provider (DASP). Archax also becomes the first encryption and security token exchange and storage platform to be fully regulated by the FCA.
“Blockchain and tokenisation are innovations that can empower more frictionless and transparent markets which, combined with an FCA regulated exchange like Archax, can deliver what capital providers, business leaders and founders now really need. The launch of the Archax exchange will help bring the institutional and digital asset communities closer together, and open up a new era for the global financial markets space.”
David Lester, Non-Executive Director at Archax.
In order to get its green light, Archax had to comply with the stringent requirements of the European AMLD5 law against money laundering. This law itself stems from the directives of the Financial Action Task Force (FATF).
35 projects for the issue of digital securities already in preparation
Security tokens, or digital securities, are tokenized versions of traditional financial assets, such as shares in companies or investment funds. They can be derived from pre-existing conventional assets or native assets, designed from the outset as fully digital.
According to Graham Rodford, CEO of Archax, the process of validation by the FCA has been long and difficult, but now that the precious sesame has been obtained, things should quickly accelerate.
The CEO explains that Archax and its technology partners are already preparing to issue no less than 35 security token projects in the coming months.
“Digitally native assets are not just about new financial instruments. They will also revolutionise all existing traditional financial markets in time too. They bring huge efficiencies from activities happening ‘on chain’, which will particularly benefit the post-trade space “,
The crypto-revolution is underway, and the tokenization of financial securities will speed up the process. Archax has achieved a feat by becoming the first regulated stock exchange of its kind, but it is likely that others will follow soon enough, all over the world.