DLA Piper working with Archax as it becomes first FCA regulated digital securities exchange

DLA Piper is working with digital asset exchange operator Archax to develop an institutional market for digital securities. Archax has become the first ever Financial Conduct Authority (FCA) regulated digital securities exchange and custodian in the UK. This important milestone for the emerging global digital securities ecosystem means that, for the first time, digital issuances from across the world will be able to trade on a secondary market authorised by a globally recognised regulatory body.

The FCA’s authorisation covers three main areas: Multilateral Trading Facility (MTF) permissions, which allow Archax to operate the first ever regulated digital securities marketplace in London; CASS custody permissions to allow Archax to offer a regulated custody service for digital assets as well as client cash; and brokerage permissions to allow Archax to face off to the widest range of participants. DLA Piper is advising a number of digital securities issuers who are looking to list their securities on the Archax exchange.

At the same time, Archax has also become the first ever company to receive its FCA cryptoasset registration, and therefore become a fully compliant VASP (Virtual Asset Service Provider). This FCA registration was introduced earlier this year as part of the amended Money Laundering Regulations (5MLD) and is now mandatory for all cryptoasset firms.

The DLA Piper team working with Archax is being led by International Group Head of Finance & Projects and FinTech Global Co-Chair, Martin Bartlam, assisted by associate Mariel Luna.

Commenting, Martin Bartlam, said: “This is an exciting moment for Archax and we are very pleased to be working with them as they achieve this significant milestone and prepare to launch the UK’s first FCA regulated digital securities exchange later this year. The launch of the Archax exchange will help bring the institutional and digital asset communities closer together, and open up a new era for the global financial markets space.”