Compliance Trend | FTX.US Challenges Derivatives License, Galaxy Digital Hires CEO of Swiss Stock Exchange to Expand European Business

The integration of encryption and traditional finance is gradually taking place, with some highly regulated institutions beginning to add cryptocurrency services. At the same time, the encryption industry is actively expanding. Unlike the wild growth before 2017, this time the industry must address regulatory issues. FTX.US and cryptocurrency investment bank Galaxy Digital both announced yesterday their plans to expand compliance operations within their jurisdictions.

Galaxy Digital Recruits CEO of Swiss Stock Exchange to Expand European Presence

According to CoinDesk, the cryptocurrency investment bank Galaxy Digital has hired Tim Grant, the current CEO of the Swiss stock exchange SIX, as its first head of European operations. Tim Grant will help manage Galaxy Digital's $2 billion fund to break through in Europe, with a focus on Germany and Switzerland.

Tim Grant believes that the reason for choosing these two regions as the breakthrough point is that the regulatory environment in smaller economies has not yet developed to a level that would allow Galaxy Digital to conduct compliant business.

Tim Grant stated:

"Within these two jurisdictions, there is an opportunity to develop institutional business compliantly, as the government supports the cryptocurrency industry."

Earlier this month, a new law in Germany officially came into effect, allowing domestic institutional funds to allocate 20% of assets into cryptocurrencies, highlighting Germany's position as a financial center in Europe and expecting to create over $400 billion potential inflow of funds into the cryptocurrency market.

Switzerland's regulatory authority had already allowed the newly established Swiss bank SEBA to provide both traditional financial and crypto financial services back in 2019. Swiss clients, including companies, asset management firms, and professional private investors, can now open accounts with SEBA. The bank also plans to offer services to clients from specific foreign jurisdictions.

"There has always been a capital wall, and we hope to break through this wall so that institutions can invest in crypto asset classes in a compliant and correct manner." – Tim Grant concluded.