SIX Exchange (a company based in Switzerland) has been successful in winning regulatory permission to release a digital-bourse. This move seems to be the initial step for building future markets.
A regulatory victory for crypto
A new decision by FINMA (a market watchdog of Switzerland) has consequently permitted the company SIX-Digital-Exchange, which is considered to be the digital off-shoot of the stock exchange of the country entitled SIX to have two licenses. These licenses will allow SIX-Digital-Exchange to run a stock exchange as well as a depository regarding the securities based on blockchain. This type of entity can be denoted as a so-called digital bourse. It is a kind of marketplace where derivatives, commodities, securities, and other financial tools can be traded.
These products can provide a substitute for the huge crypto exchange world, which is unregulated. Binance, the most prominent exchange of cryptocurrency all around the world, has recently been significantly pressurized by the authorities of South Africa and Singapore as they specified the exchange’s deficiency in complying with the regulation. Thus, the operations of the organization have been disrupted worldwide.
SIX does not work like Uber, as per the company’s head-of-exchange
SIX-Digital-Exchange described its intentions to release a completely digital exchange in 2018. However, in 2019, Thomas Zeeb (the global-head-of-exchanges at SIX) expressed that he was not in favor of initiating another Uber. The statement given by him was an ironic hint towards Ubar, which did not pursue regulatory approval before offering its service in countries.
Plans for launch
No announcement has yet been made about the specifics of the digital bourse’s launch. The company is focusing on the technology development that will lead it to offer blockchain-based regulated trading, custody, and settlement infrastructure. Following the release of the respective digital bourse, the crypto market will witness that the exchange will outcompete prominent adversaries such as the “New-York-stock-exchange” even though the firm has not done any planning in advance to provide any support to Bitcoin like the rest of cryptocurrencies.
It has been disclosed by Zeeb that he considers the regulatory approval as the initial step to lead further in the advanced digitization of the capital markets across the globe. He revealed to be determined to work in association with all of the other stakeholders to construct the future digital markets. SIX-Digital-Exchange has intentions to release its services on a global level to attract institutional investors, insurance companies, and banks.