Investment exposure to blockchain-based equities, bonds, and investment funds will be provided by Bitfinex’s new security token platform.
In a move to enter the security token offering (STO) business, Hong Kong-based cryptocurrency exchange Bitfinex has launched a STO platform that is regulated by the Kazakhstan Securities and Exchange Commission.
Bitfinex Securities, the blockchain-based investment product provider for Bitfinex, has announced the launch of its investment exchange, which will be regulated in Kazakhstan’s national financial hub, the Astana International Financial Center (AIFC). The announcement was made on Monday by the company.
As stated by the Astana Financial Services Authority, the new STO platform will operate under the auspices of the AIFC Fintech Lab, a regulatory sandbox set up in the AIFC by the Astana Financial Services Authority to assist development in the financial industry.
Bitfinex Securities, which will be based in Astana and be open 24 hours a day, seven days a week, will provide investors with more opportunities to diversify their portfolios by raising cash for issuers who wish to trade their tokenized securities publicly.
According to Bitfinex, “This significant step forward for the industry will broaden access to a variety of innovative financial products, including, in particular, blockchain-based equities and bonds, as well as investment funds.”
Bitfinex Securities Chief Technology Officer Paolo Ardoino stated that the new platform intends to be the “most liquid exchange of its kind in the world.”
Bitfinex Securities is a cryptocurrency exchange based in London. According to him, “Bitfinex Securities provides a regulated platform for small and medium-sized businesses that are currently underserved by existing, inefficient capital markets.”
According to a legal statement, Bitfinex Securities maintains a comprehensive list of regions and individuals who are barred from trading on the exchange platform.
Individuals in the United States, citizens or residents of Canada, Switzerland, the British Virgin Islands, Venezuela, Austria, and Italy are among those who are prohibited from entering the country.
Any jurisdiction subject to a comprehensive embargo by Kazakhstan, the United States, the British Virgin Islands, or the United Nations, including Iran, Cuba, the Crimea region, and others, is included in the list of prohibited jurisdictions.
In response to Cointelegraph’s request for comment, Bitfinex did not immediately answer.
Kazakhstan has recently gained greater interest from the global cryptocurrency community as a result of collaborations between some of the world’s largest cryptocurrency mining corporations and local organizations to operate mining operations and other related services in the nation.
During a crackdown on cryptocurrency mining in China, crypto mining behemoths such as Canaan shifted operations and established new firms in Kazakhstan in June, according to Reuters.
Earlier this year, Kazakhstan’s government announced that it was developing a roadmap to assist the development of the country’s cryptocurrency business, with the goal of improving the country’s crypto rules and strengthening the country’s position in the global crypto market.