Bitfinex, a Hong Kong-based cryptocurrency exchange, is entering the security token issuance (STO) industry by launching a new STO platform regulated by Kazakhstan.
Bitfinex, a blockchain-based investment product provider, Bitfinex Securities, has launched a regulated investment exchange in the Astana International Financial Center (AIFC), the national financial center of Kazakhstan, and the company is officially established Announce on Monday.
The new STO platform will operate Under the AIFC Fintech Lab, the regulatory sandbox Established The Astana Financial Services Authority supports the development of the financial industry in the AIFC. Chief Technology Officer of Bitfinex Securities Paul Adoino Tell Cointelegraph that Bitfinex Securities operates in a special economic zone in Kazakhstan that has an independent court system, adding:
“AIFC’s financial framework is based on the best standards of developed financial centers such as the United Kingdom, Singapore, Abu Dhabi and Dubai. Kazakhstan is an emerging hub in Asia with a strategic location that can serve our Asian and European markets and is ready Play an important role in this emerging alternative financial system.”
Bitfinex securities will be available 24/7 to provide investors with more ways to diversify their investment portfolios by raising funds for issuers seeking to trade their tokenized securities publicly. Bitfinex said in the announcement: “This step of great significance for the industry will expand access to a variety of innovative financial products, including blockchain-based stocks and bonds, and investment funds.”
Bitfinex Securities launched a public landing page on Monday and opened the “know-your” verification. It plans to run “know your customer” identity verification in the next four weeks.The exchange is subsequently expected to trade with Exordium (EXO) for the first time, which is a Security token “Representing equity and profit sharing rights” on Liquid Securities, a platform built on Bitcoin (Bitcoin) Sidechain Liquid network.
According to the law statement, Bitfinex Securities has a large 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 jurisdictions subject to comprehensive embargoes from Kazakhstan, the United States, the British Virgin Islands or the United Nations, including Iran, Cuba, and the Crimea region.
Kazakhstan has recently received increasing attention from the global cryptocurrency community, as some of the world’s largest crypto mining companies have been working with local entities to operate mining facilities and services in the country.During China’s crackdown on crypto mining, crypto mining giants such as Canaan relocated their businesses and launched New business in Kazakhstan In June.
Earlier this year, the government of Kazakhstan was developing a Roadmap to support the development of the local encryption industry, Plans to improve the country’s encryption regulations and strengthen the country’s position in the global encryption market.