Crypto Gets Regulated: Covesting Has Officially Received Their DLT License
Covesting, a Europe-based digital currency exchange and professional trading platform offering a secure and technologically advanced infrastructure for investors and traders worldwide, has become one of the first companies in the world to receive a Distributed Ledger Technology License (DLT) from regulatory authorities in Gibraltar.
The DLT license is offered by the Gibraltar Financial Services Commission (GFSC) and is their way of ensuring that businesses relating to the use of DLT technology or financial transmission services meet a strict regulatory framework that is meant to protect customers and reduce illicit financial activities. Engaging in business with a company that has received their DLT license offers clients several guarantees regarding the safety of their funds, and the trustworthiness of the service they are working with.
Receipt of a DLT License puts Covesting in a unique and strategically advantageous position within the cryptocurrency markets, as it will make the exchange significantly more likely to onboard institutional clients and high-net-worth individuals who want to invest on a fully regulated platform. It will also set a new standard for the cryptocurrency industry, which is currently full of many untrustworthy and regulatory incompliant platforms that pose multiple risks to investors.
Covesting’s Founder and CEO, Dmitrij Pruglo, spoke about the company’s latest success, saying:
“Receiving a DLT Providers license is a huge milestone for us as a company and as a community. To establish a new standard for crypto exchanges, to work in a regulated environment, to use the best practices, and to set a new industry benchmark are the goals we defined for ourselves at the very beginning of our journey. We are happy to be incorporated and licensed in Gibraltar, a jurisdiction in which the industry is supported by the government and service providers. It’s a new chapter for us as a company and we are very excited to continue raising the bar for the industry and ultimately becoming one of the leading and most reliable cryptocurrency platforms in the world.”
The Gibraltar Financial Services Commission is an organization regulating the financial services industry in Gibraltaraiming to protect consumers. GFSC’s supervisory work focuses primarily on the way firms are operated and governed and the identification of risks to consumers and the reputation of the jurisdiction more generally.