The Financial Markets Authority (FMA) of Liechtenstein have indicated that they will not be regulating ETERBASE, relying on the legal judgement submitted to the regulator. ETERBASE is an innovative crypto exchange that plans to adhere to all rules and procedures as well as providing all fiat financial services to customers.
The move is an important point in ETERBASE’s quest to become fully compliant in all jurisdictions. Co-founder Robert Auxt indicated in a press:
“We are extremely excited about getting over our first major regulatory hurdle to be recognized as a cryptocurrency exchange in Europe. We at ETERBASE will continue to push ourselves to become the most regulatory compliant exchange in Europe and will work towards providing our customers with the safest, most trustworthy trading experience available.”
ETERBASE is seeking to become an all in one cryptocurrency trading platform providing a vast array of financial services and a seamless trading experience. It is built to accommodate new users and experienced traders and is currently seeking to acquire a European Money Institution (EMI) licence, which will mean it can provide IBANs and debit cards to customers.
It will potentially provide many of the services typically provided by banks, with the inclusion of cryptocurrency trading and facilities. It is also a further blend of what was once considered the realm of traditional banking services with modern cryptocurrency innovations.
The Case for Compliance
ETERBASE are taking a different approach than most of their contemporaries. Many of their competitors are seeking to avoid regulation altogether. Additionally, decentralized exchanges are not operational, despite all of the hype.
They also come with a large number of caveats and are not sophisticated enough to deal with many of the current issues that cryptocurrency and fiat trading platforms have to deal with.
The ETERBASE ethos is more mature, and they are aiming to work with regulators so that the full range of services can be provided to regular customers. A battle between exchanges and regulators is not going to work long-term, and it does not serve either group.
It is especially harmful to customers, who want the best of both regulated markets and crypto financing. Many exchanges have been shut down due to a lack of compliance, and others have ran off with user funds, such as the Mount Gox scandal.
The ETERBASE regulatory assessment comes at a time when the cryptocurrency industry needs to gain more legitimacy, with widespread bitcoin volatility. It should serve to bolster the reputation of ETERBASE as one of the world’s premier cryptocurrency exchanges.