Bitbay has been officially approved as a cryptocurrency exchange in Estonia, which last year imposed harsher regulations on the business. A recent independent assessment of the European trading platform affirmed its “solvency, security, and fiscal responsibility.”
Bitbay, Europe’s premier cryptocurrency trading platform, has been fully licensed and regulated as a result of Estonia’s rigorous rules enacted last fall. The company’s accounting practices having been thoroughly inspected by an independent third party, including anti-money laundering (AML) and know-your-customer (KYC) protocols.
Additionally, the inspection validated the platform’s financial assets, which include crypto and fiat currencies, as well as the status of user accounts. Income, revenue, and profit were also reviewed, and the audit concluded that Bitbay is solvent, secure, and fiscally responsible, according to an announcement published on the exchange’s website on Wednesday.
Estonia tightened its crypto service provider licensing process in late 2020, requiring them to adhere to the same rules as traditional financial institutions under the country’s Money Laundering and Terrorist Financing Act. The Financial Intelligence Unit of the Baltic nation canceled more than 1,000 licenses previously granted to virtual currency enterprises in December.
Bitbay refers to the successful audit as a watershed moment for the exchange and the broader crypto industry. The business stated that “regulation is critical to ensuring the long-term viability of digital money and cryptocurrency exchanges.” It stressed that “only by bringing cryptocurrency into the light will we be able to open it up to everyone,” highlighting its commitment to working with governments to “modify how deposits, trades, and tax flow transparently to, through, and from crypto exchanges.” Additionally, Bitbay stated:
This certification should reassure the million or so users of our platform across Europe that their assets are in capable hands. Additionally, Bitbay disclosed significant financial numbers from its financial statement. Between October 2019 and December 2020, the company made €8,849,686 in net revenue, resulting in a net profit of €6,491,835 after tax. It has a €100,000 share capital.
The cryptocurrency exchange was founded in Poland in 2014 but opted to depart the nation in the spring of 2018, claiming challenges with access to financial services. Bitbay announced plans to relocate its exchange operations to Malta, another European Union member state. The “Blockchain Island’s” administration has been attempting to foster a crypto-friendly business climate. Crypto.com, a digital asset trading platform, recently became the first approved exchange in the country to offer bank transactions.
Also Read: Singapore Permits DBS And Australian Exchange Independent Reserve To Operate Crypto Exchanges.
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