The digital assets derivatives exchange becomes one of the first such exchanges outside of the US to get to this stage
ZUBR, the arbitrage hub for digital asset derivatives, has received today an in-principle decision from the Gibraltar Financial Services Commission (GFSC) to grant the firm authorisation as a Distributed Ledger Technology (DLT) provider, one of the first European digital derivatives exchanges that will become regulated.
ZUBR is an instant, low-cost and transparent digital derivatives arbitrage hub for traders seeking a fair and reliable gateway to crypto markets.
The in-principle approval is the beginning of the final stage of the licence authorization process, and ensures that ZUBR shall be, by the time the licence is issued, compliant with the nine regulatory principles set out in Gibraltar’s DLT regulations, designed to protect consumers and businesses using digital assets stored or transmitted on distributed ledgers.
These regulatory principles include setting up robust risk management processes, effective corporate governance, high standards of customer care, systems and security controls preventing criminal activity, and abiding by the paramount standard of honesty and integrity.
Introduced in January 2018, Gibraltar’s DLT legislation was the world’s first purpose-built regulatory framework for businesses using blockchain or another DLT.
ZUBR will continue to fulfil the in-principle conditions requested by GFSC and work with the GFSC closely to complete this process, upon which ZUBR will receive its licence.
ZUBR’s client-base includes proprietary trading firms and individuals that trade in a wide range of cryptocurrency markets, using arbitrage and other latency-sensitive strategies across multiple trading venues.
Since ZUBR’s launch, amid unprecedented volatility, the platform has helped its clients to access price data and execute market orders with the best possible speed, while also reducing the risks associated with failures and connectivity outages.
The firm shall be based in Gibraltar, with its infrastructure based in London. It has already seen a cumulative trading volume, as a self-regulated entity, of close to US$100million since it commenced its activity in March, outside of Gibraltar.
Ilgar Alekperov, CEO of ZUBR said: “This is a great step for ZUBR. A lot of time and resource has been invested to ensure our product goes above and beyond client expectation, from being the first live digital derivatives platform to have been successfully tested by ex-LSE Group testing firm Exactpro, to this licence process that will position us as one of the first regulated digital derivatives exchanges outside of the US.
“Since inception, we have always conducted our business as if we were a traditional financial services offering, but having a licence in a robust European jurisdiction was always the next step.
“Gibraltar’s DLT framework provides us with regulatory certainty when dealing with new asset classes, providing our clients with assurance that ZUBR is the go-to digital assets derivatives exchange.”