Crypto Exchange Coinfloor Obtains Gibraltar Blockchain License

News, Regulation | October 17, 2018 By:

British cryptocurrency exchange Coinfloor has become the first offshore company to secure a distributed ledger technology (DLT) license in Gibraltar.

Founded in 2013, Coinfloor, which includes the closely held Chicago-based proprietary trading firm DRW, Transferwise founder Taavet Hinrikus and venture capital firm Passion Capital among its investors, runs the largest UK-based cryptocurrency spot exchange in London.

According to a Financial Times report, Coinfloor is the first company to gain recognition as a regulated entity under Gibraltar’s cryptocurrency and blockchain legislation, which was introduced in January of this year. Coinfloor will reportedly be regulated as a “distributed ledger technology (DLT) provider.”

Obi Nwosu, CEO of Coinfloor, commented on Gibraltar’s blockchain legislation: “What impressed us was that this was in the works for a long time. It’s been well thought out, well considered. They are focusing in on quality over quantity.”

Nwosu said that the government of Gibraltar tested the Coinfloor platform on “nine principles.” These principles included robust know-your-customer and anti-money laundering policies, in addition to strong cyber-security and custody procedures.

The news about the Gibraltar license came after Coinfloor announced earlier this month that it would cut an undisclosed number of jobs because of the loss of value in the crypto market. At the time, Nwosu said the company was undergoing a business restructure to focus on their competitive advantages in the marketplace and to best serve their clients.

“As part of this restructure, we are making some staff changes and redundancies,” Nwosu said. “It’s never desirable to make these changes, but it’s a natural part of the market cycle… The market has contracted and you should make appropriate changes to your team . . . It’s happening across this space.”