Here’s why UAE digital currency platform HAYVN seeks a regulated crypto
By Christopher Flinos | Co-Founder | HAYVN
“Crypto enthusiasts and mainstream investors will now have read about the death of the CEO of cryptocurrency exchange Quadriga. It is reported that he held the only private keys to approximately $140m in digital currencies held on his exchange and that clients can no longer access.
Meanwhile, JPMorgan, the biggest bank in the US, announced last month it plans to launch a stablecoin for its clients to use in cross-border payments and settlements enabling faster, lower-cost transactions.
Last week, Swiss bank Julius Baer announced it would now offer clients access to crypto assets through a partnership with SEBA Crypto.
These stories tell us two important things. The first reminds us that the crypto world remains a ‘Wild West’ often bereft of the most basic corporate governance rules, the most basic safeguards for investors and clients, the most obvious of security measures. It frightens institutional money and demonstrates a technology-focused industry failing to understand its responsibilities as a financial services industry.
But the last two stories also demonstrate the growing institutionalisation of this asset class, as well as recognition of the enormous potential for blockchain to disrupt and transform existing industries. It demonstrates the potential for crypto as the foundation for the future of the financial world.
That potential can be realised, but first, the industry needs to grow up. Many crypto enthusiasts stick to the view that crypto was created beyond the control of governments and regulators and it should stay that way.
Bring on the controls
At HAYVN we see it the opposite way around. We want it to be regulated so that it can fulfil its potential. We’re running towards regulation to embrace it, in our case, by the Abu Dhabi General Market, a forward-thinking, but tough regulator, creating the right infrastructure specifically for the crypto market. Let’s hope other regulators follow suit.
Our wholesale embrace of regulation and institutionalisation should come as no surprise. My co-founder and I both hail from the world of investment banking, and HAYVN is a trading led, not a technology-led firm.
There is a huge prize here for the taking for the entire industry- and it is institutional money and the benefits that it will bring to push our industry further, faster. Despite the price crash in digital currencies and ICOs, I believe there remains genuine interest in the asset class.
What investors want
So what do institutional participants want from our asset class? Security, controls, compliance, audit, transparency, liquidity, best execution, research, regulated custody. At HAYVN we understand what institutional clients want and have created it.
We are partnering with market leader nCipher to offer bank-grade security to clients. Our demanding KYC/AML controls are designed to keep bad actors out of our community. Our strict corporate governance framework removes key man risk. In short, we created a platform that offers clients the very requirements they would demand of any financial intermediary they transact with.
Attracting institutional investors will help our industry grow, will lift asset values, reduce volatility and spur innovation. The old financial world embracing the new rather than resisting it. At HAYVN, we want to play a key role in making that happen.”
Key HAYVN strengths
. Liquidity –HAYVN has significant digital currency liquidity.
. Fees – Fees are transparent and low, split between maker fees and taker fees.
. Trading certainty –HAYVN holds in escrow both the digital currency and fiat currency of all clients, eliminating counterparty risk.
. Custody and security –HAYVN allows users to ensure custody of their digital currency in the secure regulated environment legally required by many institutional investors.
. Regulation- We adhere to the highest compliance standards in the digital currency industry and we expect to be regulated by the most exacting regulator in this industry.
. Fiat conversion -Regulation gives HAYVN uninterrupted access to the fiat banking system.