Press Release: Friday, February 12 2021, 08:00 CAT | Source: CEX.io
CEX.IO Limited (www.CEX.IO) announces extension of its regulatory permissions. Granted by the Gibraltar Financial Services Commission, CEX.IO Limited has received the Money Lender License.
This license allows CEX.IO customers to instantly borrow funds against their cryptocurrency holdings without credit checks via the new CEX.IO LOAN service.
The digital asset-backed lending service provides much needed capital to various crypto market participants, including investors, traders, HODLers, startups, entrepreneurs, and large enterprises. At the same time, CEX.IO LOAN users can borrow any amount between $500 and $500,000 with flexible durations (ranging from seven days to one year) and a competitive loan interest starting at 14% to 8.4% per year.
With a 50% Loan-to-Value (LTV) ratio, registered and verified CEX.IO customers can borrow funds instantly against their Bitcoin (BTC) and Ethereum (ETH) assets. The cryptocurrency exchange’s new customers have to open an account and complete the necessary Know Your Customer (KYC) checks before requesting a loan on the CEX.IO LOAN service.
After a successful request, the customer’s collateral is placed in a secure cold storage. At the same time, CEX.IO Limited credits the loan to the borrower’s user account in USD or EUR. The customer can then withdraw it to a card or bank account or use the sum to trade digital assets on the platform. Upon the full repayment of the loan’s principal and interest, CEX.IO Limited automatically releases the cryptocurrency collateral back to the borrower.
Besides security, convenience, and accessibility, CEX.IO Limited considers regulatory compliance as one of its top priorities. For that reason, the cryptocurrency service has a number of licenses in multiple jurisdictions, including the United States, Cyprus, and Gibraltar.
Since last year, the company has been licensed as a Distributed Ledger Technology (DLT) provider by the Gibraltar Financial Services Commission under Gibraltar’s highly reputable DLT regulatory regime. However, the extension to its regulatory permissions allows the firm to provide additional products and services to its customers all within a safe and well-regulated environment.
“Our new service makes cryptocurrency-backed loans accessible for participants of the digital asset market who require extra capital. With the new Moneylending license, CEX.IO LOAN can accomplish this goal, and we are delighted that Gibraltar’s regulators and Government have shown their support for our LOAN service. Through innovation and an expanding ecosystem of licensed products, we are committed to creating value on the cryptocurrency market,” Anton Chashchin, Commercial Director for the CEX.IO LOAN service, said.
“The crypto industry in Gibraltar has been growing substantially since we put the DLT Regulations in place. Given the pace at which the industry is evolving, it is no surprise that firms such as CEX.IO Limited are expanding their offering. It has been a pleasure for us to assist CEX.IO Limited in their expansion plans from a legal and regulatory perspective, which, thanks to the professionalism of all involved, has been a seamless task”, – stated Anthony Provasoli, Partner at Hassans International Law Firm Limited, which has assisted CEX.IO with legal and regulatory matters in Gibraltar.
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This article is a Press Release received from CEX.io. Global Crypto did not receive any form of compensation for its publication, and as this material is deemed newsworthy for the Southern African blockchain industry, it was thus published accordingly.