LMAX Exchange to Launch Regulated Crypto Trading Platform for Institutional Investors

Omar Faridi
  • UK’s LMAX Exchange has traded over $10 trillion in fiat currency and now plans to use its experience to launch an FCA-regulated cryptocurrency exchange.
  • The trading platform plans to provide highly sought-after cryptocurrency custodian services for banks and hedge fund companies.

The LMAX Exchange, a multilateral trading firm based in London, reportedly received a number of requests from its clients who were interested in trading cryptocurrencies like Bitcoin, Ethereum, and Litecoin. In response, it decided to announce a new cryptocurrency exchange regulated by the UK’s Financial Conduct Authority (FCA), specifically developed for institutional investors.

The company’s new crypto exchange will be called LMAX Digital. Its trading services will reportedly be provided 24/7. LMAX Exchange’s CEO David Mercer stated:

"We are furthering the legitimisation of the crypto currency market by offering institutions a platform on which to acquire, trade and hold crypto currencies securely with high quality, deep liquidity."

David Mercer

The financial firm also plans on providing cryptocurrency custodian services for its clients. This is a highly sought-after service due to the challenges associated with safely and securely holding and transacting digital currencies.

Safe, Secure Trading Environment

The exchange’s press release states that it will provide “hot/warm/cold multi-signature wallets” to ensure safety and security. Additionally, LMAX Digital will feature a central limit order book (CLOB) and a rulebook that will be visible to all its users.

Per the company, this will allow for greater transparency and “streaming, firm institutional liquidity.” Buy and sell orders will also be “time-stamped in microseconds” in order to show users the most up-to-date data.

Notably, over $10 trillion of fiat currencies have been traded on the LMAX Exchange since its launch in 2010. According to the company’s press release, it currently provides FX trading services to institutional clients in over 100 countries. Per Mercer, the company’s experience in forex trading helped it develop LMAX Digital.

LMAX Exchange Group’s future plans include launching their cryptocurrency exchange services in Tokyo and New York. This, according to the company, will help meet its clients’ requirements throughout the world. Commenting on the rise of the cryptocurrency market, Mercer stated:

“Digital currencies are, without a doubt, coming of age. Exchanges will play a crucial role in bringing the major crypto currencies into wider circulation, helping them to become accepted into conventional funds which in turn will help to support a normalisation of value.”

David Mercer

Institutional investors have not yet made any substantial investments in the cryptocurrency market. Recently, BitMEX CEO Arthur Hayes and Coinbase VP Adam White recently revealed that their companies have begun to develop products and services for them, as they’re expecting “billions of dollars” worth of investments.

Binance Plans Launch of Fiat-to-Cryptocurrency Exchange in South Korea

Samuel Haig

Leading crypto exchange Binance is rumored to be planning the launch crypto-to-fiat exchange in South Korea.

Local media outlet, Block in Press, quoted Changpeng Zhao (CZ), the founder and chief executive officer (CEO) of Binance as stating: “We do not know the details related to the establishment of the Korean branch. We are working with local partners, but we do not know the details." A Binance representative also reportedly told the publication, “We have been in discussions with BXB, but there is no specific decision.”

Binance Seeks Compliance Officer Based in South Korea

Binance is currently seeking to hire a Compliance Officer based in South Korea, further evidencing the company’s intent to open a Korean exchange. The advert for the position specifies that the candidate must possess “Good knowledge on provisions of local laws, directives, regulations and otherwise standards applicable to subject persons and knowledge of upcoming regulation of virtual currency policies is a strong plus.”

Rumors of a potential South Korean Binance exchange first surfaced in January 2019, when The Block reported South Korea to be among 8 countries that the company was considering opening a new branch in.

Binance South Korea Would Comprise Binance’s Fourth Fiat-to-Cryptocurrency Exchange

On July 10, 2019, Binance fully launched its crypto-to-fiat exchange in Singapore. The exchange was launched in partnership with Vertex Ventures China and Vertex Ventures Southeast Asia and India.

Binance SG supports Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) pairings, with customers able to deposit Singaporean dollars (SGD) via the Fast and Secure Transfers (FAST) electronic funds transfer service. Binance SG has expressed to add support for more cryptocurrencies in the future. Binance SG had previously conducted a soft-launch during April 2019, with the exchange reported an average weekly user growth of roughly 20% since then.

During October 2018, the company launched Binance Uganda, with the platform facilitating BTC and ETH pairing denominated in Ugandan shillings (UGX). During January 2018, Binance launched its first fiat-to-crypto exchange in the Crown dependency of Jersey. Binance Jersey supports Euro (EUR) and British Pound (GBP) pairings for BTC and ETH, and currently has a 24-hour trade volume of roughly $380,500.