Bitcoin Global News (BGN)
February 15, 2019 -- ADVFN Crypto NewsWire -- Licensing any crypto exchange is far from easy. Even though Coinbase is licensed as a money transmitter in most of the United States, some, like Florida, are still resisting the company’s attempts to become legally available in every area of the United States.
In a global context, most of the crypto exchange services that are considered to be fully regulated are licensed in small island nations like Malta, Bermuda, and even Gibraltar. While the rise of Malta and Gibraltar has been more recent, Bermuda seems to have had a reputation of being hands-off with regards to investments for quite some time.
With that in mind, Coinsquare represents the most recent addition to the pack of crypto companies that continue to head to sandier shores to register and license their operations. According to CoinDesk, Coinsquare acquired StellarX, which represents the chief decentralized exchange based on the Stellar protocol, today, and announced that it would be moving it to Bermuda.
Reportedly, the aim behind doing so is to be able to quickly license the exchange and start to build different services that connect to it to position Stellar as the leading payment network in the world over time. Working in their favor is their reported decision to keep StellarX operating as it always has been to preserve whatever decentralization that it has achieved.
On the other hand, what is still uncertain is how much control CoinSquare might exert over the DEX as time goes on, due to the fact that their idea of letting StellarX operate as it always has been means calling it a brand. Brands are usually owned by holding companies and therefore, by definition, cannot be considered decentralized.
Considering this, in the end, the only decentralized part of StellarX might be the fact that no central authority makes money from fees that are imposed on the network.
By: BGN Editorial Staff