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Bitfinex’s new security token platform will give investors access to blockchain-based equities, bonds, and investment funds.
Bitfinex, a Hong Kong-based cryptocurrency exchange, has entered the security token offering (STO) business by creating a new STO platform regulated in Kazakhstan.
Bitfinex Securities, Bitfinex’s blockchain-based investment product provider, has launched its investment exchange regulated in Kazakhstan’s national financial hub, the Astana International Financial Center (AIFC), the firm officially announced on Monday.
The new STO platform will operate under the AIFC Fintech Lab, a regulatory sandbox established in the AIFC by the Astana Financial Services Authority to support development in the financial industry. Bitfinex Securities chief technology officer Paolo Ardoino said that Bitfinex Securities is operating from a special economic zone in Kazakhstan, which has an independent court system, adding:
“The financial framework of the AIFC is based upon the best standards from developed financial centers such as the UK, Singapore, Abu Dhabi and Dubai. Kazakhstan is an emerging hub in Asia well placed geographically to service our Asian and European markets and it’s poised to play an important role in this emerging alternative financial system.”
Bitfinex Securities will be available 24/7, providing investors with more ways to diversify their portfolios by raising capital for issuers seeking to trade their tokenized securities publicly. “This significant move for the sector will broaden access to a wide range of new financial instruments, most notably blockchain-based shares and bonds, as well as investment funds,” Bitfinex stated in a statement.
On Monday, Bitfinex Securities introduced public landing pages and opened know verification, with the goal of running Know Your Customer identification in the following four weeks. The exchange then plans to start trading Exordium (EXO), a security token “representing equity and profit sharing rights,” on Liquid Securities, a platform built on top of Bitcoin (BTC) sidechain Liquid Network.
According to a legal statement, Bitfinex Securities has an extensive 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 jurisdiction subject to a comprehensive embargo by Kazakhstan, the U.S., British Virgin Islands or the United Nations, including Iran, Cuba, the Crimea region and others.
Kazakhstan has recently piqued the interest of the global cryptocurrency community, as some of the world’s largest crypto mining businesses have partnered with local entities to operate mining facilities and services in the country. In June, during a crypto mining crackdown in China, crypto mining behemoths like Canaan shifted operations and founded new enterprises in Kazakhstan.
Kazakhstan’s government was working on a roadmap to promote the local crypto industry’s development earlier this year, with plans to reform the country’s crypto rules and increase the country’s position in the global crypto market.