Cryptocurrency trading platform Covesting has become one of the first companies in the world to receive a Distributed Ledger Technology License (DLT) from regulatory authorities in Gibraltar. The platform is preparing for the first stage of its official launch, and the receipt of this license confirms that the platform has met all the high standards set forth by regulators. Covesting will be offering users a new type of cryptocurrency trading platform, filled with a suite of features that will ultimately raise the bar for the entire cryptocurrency industry.
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.
Gibraltar’s Minister for Commerce, The Honorable Albert Isola, spoke about Covesting’s commitment to advancing the cryptocurrency industry, saying:
“The Covesting team have displayed a deep appreciation for the need to develop a sustainable blockchain ecosystem, built on the principles of transparency and efficiency. I have been impressed by the team’s drive and ambition to meet such a high standard in secure trading. Today’s announcement is vindication of their tireless efforts to date, and I look forward to seeing the platform push forward in the months and years ahead.”
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. In order to receive a DLT license, Covesting had to prove to regulators that they meet a series of strict regulatory principles of corporate governance, capital requirements, security and many other principles that ensures that clients won’t face any problems while working with the service.
In addition to giving clients a series of assurances, having a DLT license allows the platform to have a suite of features that bring benefits to clients. One notable feature of the Covesting exchange is that it will ultimately allow for users to deposit and withdraw fiat currency directly to and from the exchange. This feature is only available to users because Covesting is allowed to engage in banking relationships thanks to the receipt of their DLT license.
With news of cryptocurrency exchange malpractices breaking frequently, it is more important than ever to find an exchange and management team that is held to high standards by regulators. With a DLT license, the regulator requires Covesting to hire an independent auditor and perform annual audits that will confirm that all their business practices and policies meet high standards, and that all the staff meet the necessary qualifications.
By receiving a DLT license, regulators have also found that the management team is trustworthy, and that they have put in place a series of internal practices that will ensure that no funds can be stolen by anyone in the team. Clients can feel safe knowing that they are less likely be a victim of platform hacks or internal exit scams that are frequent in the cryptocurrency industry.
Many analysts believe that the next bull run for the cryptocurrency markets will come after institutions enter the markets, but the industry is in dire need of a reputable, and compliant, service that offers investing solutions for institutions. Being fully compliant with regulatory authorities will offer greater assurances for funds, banks, brokers, and corporations, that their funds and investments are safe.
While speaking about the receipt of their DLT license, Covesting’s CEO and founder, Dmitrij Pruglo, said:
“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.”
Covesting is moving ahead at a rapid pace, hitting all their roadmap goals and continuously impressing the entire cryptocurrency industry. Recently, the project announced that their mobile trading application is available on the Apple App Store, allowing users to have all the benefits the platform offers, all from the convenience of their mobile devices.
The exchange also wrapped up their first ever trading competition on 23rd October, and the competitor’s success, despite a sideways market, has proven just how profitable trading on the Covesting platform can be.
Covesting is currently one of the most exciting projects in the cryptocurrency community, and the receipt of their DLT License will help spring the project to new heights.