BitX, the Singapore-based cryptocurrency startup, won approval to enter the Financial Conduct Authority's regulatory sandbox in the UK. The company offers consumer wallets, exchange services, and APIs
BitX, the Singapore-based cryptocurrency startup, won approval to enter the Financial Conduct Authority's regulatory sandbox in the UK. The company offers consumer wallets, exchange services, and APIs for businesses. It will test a blockchain-based remittance system as part of the program.
The move marks BitX's first entry into the UK and European markets. Vijay Ayyar, the company's head of business development and Asia leader, told MiningPool that the FCA sandbox will help the company build a sustainable, licensed business model for its enterprise product. The company plans to apply to similar arrangements elsewhere, including Singapore.
"This is likely to include Singapore," Ayyar said. "We are already in talks with a number of other regulators in various countries about similar arrangements."
BitX started in 2013 and operates from London, Singapore, and Cape Town. The platform handles more trading volume than any other crypto exchange in Southeast Asia and Africa. BitX serves markets across Indonesia, Malaysia, Nigeria, Singapore, and South Africa.
BitX will run tests for both its enterprise and consumer divisions during the sandbox period. The enterprise tests will focus on the FALCON protocol, which enables licensed remittance firms to move British pounds into other currencies using blockchain and digital currencies.
Marcus Swanepoel, BitX's chief executive, framed the sandbox work as a confidence builder. "We see these tests as an important first step in building trust and confidence in Bitcoin and blockchain technology," Swanepoel said. "We believe that this type of constructive cooperation between all stakeholders will be critical to the long-term success of our industry."
The FCA announced 18 companies in its first sandbox cohort on Tuesday. Nine work in bitcoin and blockchain. Beyond BitX, the FCA approved Billon, which moves and holds funds through a mobile app; Epipythe, a cross-border payments firm; Govcoin Limited, which is testing emergency payments to mobile devices with the Department for Work and Pensions; Nivaura, a platform for managing private placement securities; Otonomos, which represents private company shares on a blockchain; SETL, a retail payments system using smart cards and the OpenCSD blockchain; Tradle, an app that records identity and verifiable documents on a blockchain; and Tramonex, which uses smart contracts to route charitable donations.
The FCA's sandbox program provides companies a controlled environment to test new products, services, business models, and delivery systems with live users.
