As of November 12th 2018, the B2BX cryptocurrency exchange has received approval for a regulatory license from the Estonian Financial Intelligence Unit (FIU). The license allows for B2BX to compliantly offer the trading of cryptocurrencies in Estonia including crypto-to-crypto trades and in the future, crypto-to-fiat parings.
How B2BX is Set to Become Regulatory Compliant in Estonia
B2BX Exchange, which is part of the B2Broker Group, was attracted to Estonia due to the country’s reputation for supporting new forms of technology and innovation. Estonia’s reputation came through, given the FIU’s issuance of B2BX’s license to operate as a regulated cryptocurrency exchange.
The license is said to take effect in the near future, allowing for crypto-to-crypto trading now and crypto-to-fiat trading soon. Users of the trading platform will be required to undergo strict Know Your Customer (KYC) screening, which will demonstrate transparent regulatory compliance.
Notably, B2BX is one of a select few exchanges throughout the world which support the trading of all five major stablecoins: USDt, USDC, GUSD, PAX, and TUSD.
Arthur Azizov, CEO and Founder of B2Broker Group, provided the following comments:
“We are delighted to have secured regulatory approval from Estonia, placing B2BX Exchange in the enviable position of being one of the first exchanges to achieve this accolade. I have long been a proponent of regulation which I believe will promote further the adoption of cryptocurrency usage and cryptocurrency trading. Our users will be able to benefit from an enhanced level of protection, safe in the knowledge that they are dealing with a world-leading, regulated cryptocurrency exchange”
Estonia to Join Malta as a Global Leader in Cryptocurrency Legislation?
The announcement comes at a time when Malta has seemingly pioneered the regulatory guidance for cryptocurrencies. In the summer of 2018 the Maltese Parliament passed three bills into law, in an attempt to provide clear regulations for all to follow. It appears as though Estonia is trying to follow a similar path.
The situations in both Malta and Estonia are quite different from that of the United States where the SEC has yet to clarify its approach to the ‘infamous’ utility token. A lack of clarity has also struck Europe after ESMA was requested to elucidate its definition of ‘transferable security’ for the sake of security token classification.
The situation is starting to push companies from the traditional ICO to blockchain’s newest wave: Security Token Offerings (STOs). Earlier this month, SportsLedger announced plans for an STO after cancelling their ICO out of regulatory worries.
While countries like Malta and Estonia trailblaze cryptocurrency legislation, blockchain-based companies in other parts of the globe are turning to security tokens as a viable alternative.
What the future holds for both however, is yet to be seen.
What do you think of the regulatory approval for B2BX Exchange? Will such activity push other regulatory bodies throughout the world to increase support for cryptocurrencies? Let us know what you think in the comments below.
Image courtesy of B2Broker.