ZUBR, a cryptocurrency derivatives exchange, recently disclosed that the processes of getting approval as one of the regulated crypto exchanges in Gibraltar are very tough, and not that straightforward. ZUBR is on the road to obtaining its license but admits it is not simplistic.
Crypto exchanges in Gibraltar passes through a rigorous process for license
The derivatives exchange began its trading service in the past two months and has only obtained an in-principle greenlight as a distributed ledger technology (DLT) company from GFSC, fully known as Gibraltar Financial Services Commission.
However, the supposed first-stage approval was granted with the condition that the derivatives trading platform would address its feedback before it finally receives the license. With the aim of being among the regulated crypto exchanges in Gibraltar, ZUBR said that reaching this point alone was difficult.
The exchange had to maintain a 20x maximum leverage, and raise its entry barriers in order to prevent retail users; hence, it only focused on the professional clients. The co-founder of the exchange, Oleg Ravnushkin, commented in the report:
From day one we realized hundred percent…that we would have to sacrifice a lot to get into the regulated space.
Businesses won’t be affected
The license in question is strictly for the crypto exchanges in Gibraltar and other companies that fall under DLT space. The license is based on about nine different principles, one of which says that the applicant must operate with integrity and honesty.
“It’s not that straightforward to just come and get a Gibraltar license…you cannot just, you know, switch to Gibraltar. […] We had to be comfortable with a lot of additional, you know, checks and outsourcing providers to make sure that the trading was transparent and that the market structure was solid so there’s no manipulation whatsoever.”
However, Ravnishkin added these changes won’t affect their operations, including other crypto exchanges in Gibraltar. Meanwhile, ZUBR admitted that it might take up to months before the full license arrives. At the moment, about 12 companies have received the DLT license so far, and 12 more firms are going through the process, including ZUBR.