Success continues for FTX – Bitcoin (BTC) giant FTX continues its meteoric rise into 2021. After seducing many investors during its last fundraising, Sam Bankman-Fried’s exchange is convincing the regulatory bodies. For their part, Binance and Coinbase, its two main competitors, are under repeated attack by regulators, in the United States as elsewhere.
A Bitcoin exchange to conquer the world
Last August, FTX announced theacquisition of LedgerX by its American subsidiary, FTX.US. As a reminder, thanks to this investment, the exchange can now offer derivatives to its US investors. Indeed, the LedgerX derivatives trading platform had already obtained a license from the Commodity Futures Trading Commission (CFTC).
Moreover, the exchange is headquartered in Hong Kong, which also gives it a prime position in the Chinese market compared to its main competitors, Binance or Coinbase. However, the sustainability of this location will have to be confirmed. Indeed, the regulation of digital assets in Hong Kong is expected to change in the coming months.
The company’s main concern is that a draft law provides for a strict supervision of the cryptocurrency industry and the people who can trade them. Indeed, there are rumors surrounding this draft that Hong Kong would only allow access to the cryptocurrency markets for wealthy investors. This is why Sam Bankman-Fried has already stated that if the ban applies to individuals, regardless of their nationality, he would relocate his firm’s headquarters to another country.
FTX establishes itself in Gibraltar and the Bahamas
FTX’s subsidiaries in Gibraltar and the Bahamas have just been granted licenses by local regulators.
First, on September 17, FTX said that its Gibraltar subsidiary(Zubr Exchange Limits “ZUBR”) had obtained approval from the Gibraltar Financial Services Commission to be considered a DLT provider. ZUBR was acquired by FTX earlier this year, with a view to expanding its territorial footprint and benefiting from the expertise of local advisors in Gibraltar.
In addition, in May 2020, ZUBR had already received approval in principle for its DLT provider licence in Gibraltar. Unquestionably, FTX has seen this acquisitionion as an opportunity to expand its services in this territory.
“We are delighted that ZUBR is now fully licensed by one of the world’s leading crypto regulatory frameworks. ZUBR obtaining this DLT provider license is a key step towards our goal of creating a trustworthy exchange group that can be used by investors of all types, worldwide.”
Founder and CEO of FTX
Then, just 3 days later, the company announced that the Bahamas Securities Commission has accepted the registration of FTX Digital Markets – FTX’s Bahamian subsidiary – as a digital asset company. This registration is required under the Digital Asset Registration Exchange Act (DARE Act). In addition, it will allow FTX to offer its services in The Bahamas in a compliant manner.
It would appear that FTX is engaging in “legal strategy shopping”. It is clear that the Hong Kong exchange is taking into account the regulatory situation of companies in its acquisition projects. This meticulous study is paying off and is allowing FTX to gradually conquer all continents.
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