UK Forex Broker LMAX Turns to Institutional Crypto Investors

The new LMAX Digital cryptocurrency exchange will offer trading in main virtual currencies.

by Marin Marinov
21 May • 2 min
In Markets

LMAX Group, owner of London-based forex broker and liquidity provider LMAX, has launched a cryptocurrency trading platform, aimed at institutional investors, the company said on Monday. The platform, dubbed LMAX Digital, offers Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Litecoin (LTC) trading against USD.

The virtual currency exchange is subject to the same rules as the traditional forex platform of LMAX Group, because the company is licensed by British market regulator, the Financial Conduct Authority (FCA). One of the main FCA rules is for fair competition, meaning that all cryptocurrencies should be treated equally regardless of status, size or activity levels:

“We are furthering the legitimisation of the crypto currency market by offering institutions a platform on which to acquire, trade and hold crypto currencies…The rise of institutional trading of crypto currencies will be a game-changer for the industry,” LMAX Exchange CEO David Mercer, said in a statement.

The cryptocurrency platform

As a registered company in the European Union (EU), LMAX Digital should comply not only with FCA rules, but also with the EU anti-money laundering measures for virtual-to-fiat trading platforms, including customer verification procedures.

To be an LMAX Digital customer, every institutional investor should meet the internal rules of the exchange including a good reputation, proper trading competence and experience, adequate governance and organizational structure, and sufficient resources for trading.

“Digital currencies are, without a doubt, coming of age. Exchanges will play a crucial role in bringing the major crypto currencies into wider circulation, helping them to become accepted into conventional funds which in turn will help to support a normalisation of value,” David Mercer said.

The LMAX platform offers fiat transfers via bank and cryptocurrency deposits. Currently it runs from London but soon will replicate the data to its New York and Tokyo centers to support clients on a global level.

LMAX Exchange Group was established in 2010 as a multilateral trading venue for foreign exchange and has enabled transactions of over USD 10 trillion of fiat currency. It operates a forex exchange for institutional investors (LMAX Exchange) and a global broker platform (LMAX Global)

LMAX Digital is not the first project that aims institutional investors like hedge funds or banks. Last week, US-licensed Coinbase, one of the leading players and owner of GDAX, revealed a service for institutional investors.