Aaron Kaplan, founder and co-head of Prometheum, said FINRA has approved a subsidiary of brokers to operate an alternative trading system that allows institutional and individual investors to trade digital assets. He said it was a major step towards mainstreaming securities.
FINRA, a US regulator, has become a member of the Prometheum Ember ATS (PEATS) and has approved the operation of this ATS. Investors accredited and uncertified for trading in digital asset securities. The United States Securities and Exchange Commission must also approve before launching the ATS. It could be the fourth quarter of this year.
We are pleased to announce that our affiliate, Prometheum Ember ATS Inc., has been approved as a member of FINRA, which operates ATS for digital asset securities. @ Anchoring, All investors (certified and non-certified) will be available soon. https://t.co/48QAKj9j9V
– Prometheum (@PrometheumInc) August 11, 2021
Prometheum was founded in 2017 by a group of Wall Street lawyers as a blockchain-driven company to create an end-to-end ecosystem for trading in digital asset securities.
Kaplan told Markets Media: We see this as a big step forward for the industry as a whole as it is a transition for the general public to invest in digital asset securities. “
PEATS automates Know-Your-Customer and anti-money laundering requirements and integrates traditional blockchain technology with on-chain management and payments offered by the first official federal digital bank, Anchorage Digital Bank.
“I think this is just the beginning, as it is the dawn of public market infrastructure for digital assets,” Kaplan added. “It will be a game changer.”
He added that Prometheum is keen to get regulatory approvals to trade digital assets elsewhere that are beneficial to the industry and grow the overall market.
“I think this could be the start of the development of a domestic market system for digital assets in the United States,” he added.
Kaplan also predicted an increased involvement of traditional financial institutions in the development of new infrastructure and market centers.
“This is a good place for Promethium and we are looking forward to it,” Kaplan added.
Prometheum was founded with a treaty that federal securities law provides the best framework for regulating digital assets.
Kaplan said: You will see more activities, processes and participants related to digital assets under SEC jurisdiction. We believe Prometheum is in a good position as federal securities laws take effect. “
Additionally, Prometheum recently hired Rosemarie Fanelli as Chief Regulatory Officer. She was previously a Senior Advisor in the Membership Oversight Department of FINRA and was a member of the Digital Policy Group, whose primary focus is to address policy issues related to digital assets.
Today, Poloniex LLC announced that it has agreed to pay the operating costs of an unregistered online digital asset exchange as part of operating a trading platform that facilitates ‘buying and selling of digital asset securities. ..
– SEC (@SECGov) August 9, 2021
On August 9, 2021, the SEC announced that Poloniex had agreed to pay more than $ 10 million to pay for the operating costs of trading in unregistered online digital assets. According to the SEC Order, the Poloniex trading platform, jointly using the Poloniex website, has provided a non-discretionary means of interaction and execution of trading orders, as defined by the Law on securities. Meet the “Exchange” criteria. Poloniex order book and trading engine.
Enforcement News: Federal court ordered BitMEX to pay $ 100 million for illegal operations of cryptocurrency trading platforms and money laundering prevention violations. Click here for more details: https://t.co/sjlubs0rTT
– CFTC (@CFTC) August 10, 2021
Separately, on August 10, 2021, the CFTC issued a consent order to the five companies responsible for operating BitMEX. This will force cryptocurrency derivatives trading platforms to pay a civil fine of $ 100 million for the illegal operations and money laundering prevention violations of cryptocurrency trading platforms.