Cryptocurrency exchange Gemini applies for a broker-dealer license
|- The company applied to FINRA for permission to trade tokenized securities.
- The process may take time due to the regulator's reluctance to approve broker-dealer operations for cryptocurrency companies.
The US-based cryptocurrency exchange owned by Winklevoss twins applied to the Financial Industry Regulatory Authority (FINRA) for a license of a broker-dealer. It will allow the company to operate as an alternative trading system and offer cryptocurrency securities on the blockchain.
Earlier, the exchange entered a partnership deal with the fintech startup Harbor that builds solutions for tokenizing real-world assets. The partnership will allow institutional investors buying securities for Gemini Dollar (GUSD), a proprietary stablecoin of Gemini exchange.
However, now the New-York-based company wants to trade the instruments from external platforms such as Harbor on its own trading platform, according to the knowledgeable sources cited by Coindesk.
However, the ambitious plans may take time to come to life as FINRA is reluctant to approve the applications for a broker-dealer license from cryptocurrency companies. Currently, about 40 such applications are waiting for the regulator's decision.
Read more about FINRA's backlog here
Meanwhile, Gemini obtained the permission of the New York Department of Financial Services (NYDFS) to provide custodial services for digital assets.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.