The Archax exchange has been licensed under the FCA and is the first digital asset trading platform to achieve such approval in the UK.
In reality, Archax is not a real crypto exchange, but a system where to list and trade tokens, supported by blockchain, aimed mainly at institutional investors and companies.
This is a success for Archax, making it emerge as a regulated and credible exchange where digital assets can be traded.
The authorization now available to Archax allows it to cover three key areas:
- MTF (multilateral trading facility) licenses, allowing the management of the first regulated market for digital securities based in London;
- Custody authorizations, allowing for the provision of a regulatory compliant custody service for tokens and money;
- Brokerage authorizations, allowing to operate with a wide range of participants.
Archax and FCA, a long journey
Archax asked for this authorization some time ago, to adapt to the new 5MLD anti-money laundering legislation.
Thanks to it, Archax will be able to expand its market towards SMEs and contribute to raising capital in a very innovative way: through tokenization. Archax’s intention is to facilitate the intermediation process and provide liquidity for those assets that are difficult to deploy in the traditional market.
David Lester, former Chief Strategy Officer of the London Stock Exchange Group and Archax’s consultant and non-executive director, commented:
“In the current global economic climate, providing new, efficient ways for small and medium sized businesses to access capital is key. Blockchain and tokenisation are innovations that can empower more frictionless and transparent markets which, combined with an FCA regulated exchange like Archax, can deliver what capital providers, business leaders and founders now really need”.
The project is ambitious because:
“The launch of the Archax exchange will help bring the institutional and digital asset communities closer together, and open up a new era for the global financial markets space”.
Graham Rodford, CEO of Archax, explained that the path to obtaining the FCA license has not been easy at all:
“We have been talking to the FCA for a while and the application process has been a tough journey, but we are pleased to have now achieved our first significant milestone as we prepare to launch the UK’s first FCA regulated digital securities exchange later this year. Our technology partners are second to none, we have a pipeline of 35 digital issuances in place, and we are signing up global brokers and market makers ready for go-live. This is an exciting moment for Archax and a great step in the evolution and legitimacy of digital securities globally”.
For the CEO, a revolution is in the making:
“Digitally native assets are not just about new financial instruments. They will also revolutionise all existing traditional financial markets in time too. They bring huge efficiencies from activities happening ‘on chain’, which will particularly benefit the post-trade space”.