Bitfinex Launches A Kazakhstan (AIFC) Regulated Security Token Platform
Bitfinex, cryptocurrency exchange based in Hong Kong, is moving into the security token offering (STO) industry by launching a new STO platform regulated under AIFC in Kazakhstan.
Bitfinex Securities, Bitfinex’s blockchain-based investment product provider, has launched its investment exchange regulated under Astana International Financial Center (AIFC) in Kazakhstan, the firm officially announced on Monday.
The Bitfinex Securities platform is designed to facilitate the raising of capital for issuers seeking to have their tokenized securities publicly traded through an easily accessible “admission to trading” process. This meaningful step for the industry will widen access to a variety of innovative financial products, including notably blockchain-based equities and bonds, along with investment funds.
The new STO platform will operate under the AIFC Fintech Lab, a regulatory sandbox (AIFC FintechLab) established in the AIFC by the Astana Financial Services Authority to support development in the fintech industry. Bitfinex Securities is operating from a special economic zone in Kazakhstan, which has an independent court system, similar to UK, Singapore and Dubai. Kazakhstan is an emerging hub in Central Asia, geographically in a very strategic location to service both Asian and European markets.
The Bitfinex Securities platform will be available 24/7, an established practice in the digital token space. Furthermore, as the platform will deploy leading-edge technologies to reduce costs, increase efficiency and optimize the success rate of capital raises, investors will obtain access to a low-cost, high performing and global security trading market.
Bitfinex Securities launched public landing pages and opened know verification on Monday, planning to run Know Your Customer (KYC) checks in the next four weeks. The exchange then expects to debut trading with Exordium (EXO), a security token “representing equity and profit sharing rights” on Liquid Securities, a platform built on top of Bitcoin (BTC) sidechain Liquid Network.
According to a legal statement, Bitfinex Securities has an extensive list of jurisdictions and persons prohibited from trading on the platform. Prohibited persons include individuals in the United States, citizens or residents of Canada, Switzerland, the British Virgin Islands, Venezuela, Austria and Italy. Prohibited jurisdictions include any jurisdiction subject to a comprehensive embargo by Kazakhstan, the U.S., British Virgin Islands or the United Nations, including Iran, Cuba, the Crimea region and others.
Kazakhstan has recently been drawing increased attention from the global cryptocurrency community as some of the world’s largest crypto mining companies have been working with local entities to run mining facilities and services in the country. During a crypto mining crackdown in China, crypto mining giants such as Canaan relocated operations and launched new businesses in Kazakhstan in June.
Earlier this year, Kazakhstan’s government was working on a roadmap to support the local crypto industry development, planning to improve the country’s crypto regulations and strengthen the country’s position in the global crypto market.
