In this article, we would like to clarify BTSE’s legal and regulatory status.
In our mission to build a suite of financial services that would utilize Bitcoin and digital asset technologies to provide real-world financial products, we started working on BTSE in March 2018. This included laying the technological foundation for a robust and reliable platform for the BTSE Exchange as well as thoroughly coordinating the legal side of our envisioned business operations.
At the time, we were advised that Dubai was considering a regulatory framework for cryptocurrency exchanges which would be ready within about a year. We were further informed that the Commercial Brokers and Payment Services Provider licenses would suffice in the interim. By September 2018, we had finalized the paperwork for two entities and proceeded to integrate banking solutions to power our fiat on- and off-ramps.
As many in the cryptocurrency space are well aware, crypto regulations are far from stable and often very uncertain, even when regulations in a region have already been formed. Malta presents an example of a country that was once hailed as a new crypto haven, but has made little regulatory progress. The atmosphere in any country can rapidly change from friendly to unfriendly, and vice versa. We saw this in the early days of Bitcoin in China and India.
By mid-2019, while rumors of an upcoming regulatory framework were still circulating, we had not yet seen any concrete progress from Dubai regulators in penning actual legislation. Since we are constantly working on the development of products and services to enhance the user experience of our customers and grow BTSE’s suite of services, we decided that continuing BTSE’s operations under the existing framework would not be feasible in the long term. That is why in October 2019, we formed BTSE Holdings Limited in the British Virgin Islands, a country that has welcomed cryptocurrency businesses in recent years, thanks to its friendly regulatory environment.
We have been gradually transitioning to the British Virgin Islands and continue to monitor the global regulatory landscape. As a cryptocurrency exchange, we continue to be agile and responsive to regulatory updates and evolve together with the global legal landscape. We do not rule out the possibility of continuing to utilize certain Dubai entities for ancillary offerings unrelated to that of a cryptocurrency exchange.
Our terms of service will be updated accordingly from time to time to reflect any changes to our incorporation, regulatory, or legal status.