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- FTX Digital Markets had been awarded regulatory permission as a digital assets business
- FTX is committed to provide all our clients with a safe, trustworthy, and compliant exchange
Sam Bankman-Fried’s derivatives exchange FTX is moving to a new location. An FTX spokesperson confirmed that the FTX has officially relocated its headquarters from Hong Kong to the Bahamas.
When asked why the company made the move, an FTX spokesperson said, FTX is committed to maintaining a close working relationship with local regulators to help drive the growth of cryptocurrencies and reinforce its commitment to providing all of our customers with a safe, reliable and compliant exchange. FTX is thrilled to participate by having a local presence as jurisdictions such as the Bahamas develop out comprehensive crypto regulatory regimes.
On Monday, FTX stated that its Bahamian subsidiary, FTX Digital Markets, had been awarded regulatory permission as a digital assets business in the Bahamas, and that Ryan Salame had been selected to run the operation. Salame is the former head of over-the-counter at Alameda Research.
The second most popular crypto exchange will remain incorporated in Antigua and Barbuda. FTX Trading Limited received branch licenses in Gibraltar and the Bahamas earlier this week.
Bahamas opens up to cryptocurrency business
The Bahamas is one of the few jurisdictions to set up a full framework for crypto, said FTX founder and CEO Sam Bankman-Fried. He went on to say the country is out of COVID alive, safe and without quarantine.
The Bahamas, like other Caribbean nations like Bermuda, has embraced bitcoin firms. Last year, the Bahamas began issuing the Sand Dollar, a digital money issued by the central bank. Bahamas-based Deltec Bank already provides services to FTX, Tether, and other cryptocurrency exchanges.
Additionally, at the end of 2020, the country passed the Digital Assets and Registered Exchanges Bill, which allows for licensing of cryptocurrencies and other fintech companies. The first digital asset invoice to be published under the Articles of Association is FTX Digital Markets. Executive Director Christina Rolle of the Securities Commission praised the DARE Act’s role in bringing FTX to the island—and hinted that additional crypto firms may follow.
Recently, regulators throughout the world have started focusing more attention on cryptocurrencies, with China’s central bank declaring all virtual currency-related activity unlawful.
Hong Kong following suit with China
The first digital asset invoice to be published under the Articles of Association is FTX Digital Markets. Chinese authorities stressed on Thursday that cryptocurrency trading is still illegal, although work on a digital yuan continues. Binance was forced to suspend enabling Hong Kong users to trade derivatives on its platform last month. Derivatives include futures, options, and perpetual contracts. It claimed a commitment to compliance as the reason.
FTX also generates the majority of its exchange volume via crypto futures rather than spot trading, making Hong Kong a less-than-ideal site for a headquarters.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
