After the collapse of Mt. Gox, a lot of Bitcoin supporters started suspecting Bitcoin exchanges as many of them lost their invaluable investments. Now, Atlas ATS and The National Stock Exchange (“NSX”) have announced that they have signed a Memorandum of Understanding (MOU) to have NSX develop and enforce rules to regulate Atlas ATS.
According to a press release from the two entities the announcement will make Atlas ATS the first fully regulated U.S.-based digital currency exchange. Though the Atlas exchange has been operating for several months, trading digital currencies such as Bitcoin and Litecoin, once it gets the mark of being a regulated one, it will help it gain more credibility than ever.
The company says that though it is operating with the regulation set by the government, the new development will make it official. In his statement David Harris, Chairman and CEO of the NSX said that his company is very excited about working with Atlas ATS and all other market participants in the digital currency space.
He said that it will create a framework for safe, transparent and auditable rules applied to a unique market place. According to him the NSX intends to target its regulatory capabilities to identify currently non-regulated financial exchanges, digital currencies and their derivatives are prime examples of such markets.
A Regulated Bitcoin exchange Will Generate Trust among Investors
The new identity is not coming cheap for the NSX as it spent a significant amount of time and money over the last few years developing regulatory infrastructure and expertise that has been built to enable us to regulate and provide surveillance in multiple asset classes. Coming at a time when regulators are catching up to digital currencies, it looks promising.
Even Shawn Sloves, Atlas’s Co-Founder and CEO admits that Bitcoin and other digital currencies are quickly gaining acceptance worldwide, however, there is a tremendous need for a secure, trusted entity to exist before investors are comfortable trading this new asset. Thus, according to him investors, both retail and institutional are looking for a regulated Bitcoin exchange.
Shawn Sloves admits that there is a need for an exchange with top-notch security, fast trading technology, and trusted oversight and that will now be catered by Atlas ATS. Coming at a time when digital currency trading is largely unregulated, and presents a challenge to exchanges that are looking to bolster investor confidence, it has been welcomed by stakeholders.
To contact the reporter of this story: Deepak Tiwari at email@example.com