Liechtenstein Cryptoassets Exchange (LCX) has conducted an IEO with Liquid.com, where the token is listed since October 1st. LCX has big plans, but a recent FMA statement indicates there might be delays.
Governments around the world are increasingly looking into crypto regulations. Liechtenstein has just approved the Blockchain Act, which has been welcomed by industry leaders across the globe. In the meantime, the German government has published its official blockchain strategy and announced to draft legal changes by the end of this year.
With governments creating legal certainty for blockchain businesses and investors, the ground is set for the emergence of a regulated crypto-industry. Regulated exchanges will form part of this ecosystem, and the first attempts are underway: Earlier this month, Stuttgart Stock Exchange was the first regulated exchange to launch a crypto trading platform in Germany. Both, Switzerland’s leading stock exchange SIX and Germany’s Deutsche Börse are also working on digital platforms.
Liechtenstein, a global pioneer in blockchain regulations, is hoping for the Liechtenstein Cryptoassets Exchange (LCX) to become a frontrunner in the space. LCX is a blockchain ecosystem for professional investors, intending to become one of the world’s first licensed and supervised blockchain banks blending traditional and crypto-assets. If successfully launched, the exchange will form an integral part of Liechtenstein’s blockchain environment.
LCX has conducted an IEO with Liquid.com
Earlier this month, LCX launched an Initial Exchange Offering (IEO) of the LCX Token (“LCX”) with the global cryptocurrency platform Liquid.com (“Liquid”). An IEO is in principle the same as an ICO, the difference being in the role of the exchange, which acts as a gatekeeper by conducting due diligence.
The IEO started on September 13th and ran for ten days. Since October 1st, the token is listed on Liquid.com. Created as a utility Token, the LCX Token is used in LCX’s blockchain ecosystem to pay fees associated with the services offered by LCX AG, such as LCX Terminal subscription, and exchange transaction fees.
According to a press release, LCX chose to conduct an IEO with Liquid because “both companies share a similar vision, working closely with incumbents of the financial industry, banks, and regulators – aiming to lead by example in a sector where regulation, security, and compliance are scarce.”
FMA says LCX not licensed in Lichtenstein
Earlier this year, LCX has launched LCX Terminal, a trading desk to trade and manage crypto-assets across multiple cryptocurrency exchanges. Additional product offerings such as a crypto custodian service and a regulated security token exchange are in the making. LCX also plans to launch several Security Token Offerings via their platform LCX Assets.
It seems, however, that LCX does not yet comply with all regulatory requirements. The Financial Market Authority Liechtenstein (FMA) states on its website: “LCX AG […] has not been licensed by the FMA and has not submitted an authorization request to the FMA, and therefore the operator of the website www.lcx.com is not allowed to provide any financial services that are subject to authorisation under Liechtenstein law.”
According to the company’s website, LCX is in the process of applying for an OTF/MTF licence under MIFID II and a banking license according to the Liechtenstein Banking Act. When asked for a statemnent, LCX CEO Monty Metzger commented, that all good things take time. “We decided to prepare all FMA applications with much detail, even if that means, that we may need more time,” he said.