Lykke News Digest
This news round-up comes at a remarkably busy time at Lykke.
As a company, Lykke is moving from strength to strength across several regions, with a host of innovative projects being diligently progressed by our dedicated team of brilliant individuals, on a mission — to help change the world, one step at a time.
Starting off in our recently-opened UK office, in the City of London; there is considerable progress to report.
Our CBDO Demetrios Zamboglou is overseeing an MTF application with the FCA and is currently in the process of completing Lykke’s overarching IT Strategy including systems and controls handling. With almost all the I’s dotted, and the T’s crossed, Lykke’s status as the world’s first regulated cryptocurrency exchange/broker is nearing closer.
Demetrios assures us that all the systems and controls will be in place for the MTF to be successfully granted later this year.
Meanwhile, the parent entity Lykke Corp UK, is now working on finalising all its financial reporting for the year.
Moving our round-up southeast across Europe, Lykke’s Cyprus-based entity managed by Yiannis Menelaou is reporting strong progress. The acting financial services regulator in Cyprus (the Cyprus Securities and Exchange Commission (CySEC)) invited Lykke’s representatives to present the Lykke concept directly to their top Chiefs, last month.
The meeting was the first of many, and the first time Lykke engaged CySEC directly and in person. Yiannis and his fellow Lykke colleagues presented Lykke's business plan and vision in full as well as discussing all the issues surrounding blockchain, DLT and cryptography.
Very intriguingly, CySEC’s greatest fascination was related to DLT, and specifically, its capability in streamlining existing trade settlement issues.
Yiannis reports that the meeting was hailed as a success by both parties. Lykke was able to understand exactly what CySEC is looking for from a regulatory perspective, and CySEC officials now have a much better understanding of the potential underpinning crypto-currencies and the technology they’re all built on.
Lykke’s Cyprus team is now formalising all the required documentation and the trading manuals required by CySEC, to be presented at the next meeting. We hope this is a sign of things to come: Regular and candid communication between Lykke and CySEC for the betterment of traders and investors.
In the coming months, the plan is to present Lykke’s Cyprus-based operations in every possible detail to CySEC as part of its gradual assimilation of blockchain technology and its potential. Lykke’s proprietary technology was developed in-house and remains our key differentiator from other competitors — although it will take some time getting the regulators up to speed.
On the Electronic Money Institution (EMI) front, Lykke’s EMI application is now ready to be submitted to the Central Bank of Cyprus (CBC) for authorisation. Lykke EMI is designed to facilitate all Lykke’s electronic payments, including all subsidiaries and clients.
Lykke EMI has been earmarked to become a full-scope electronic money and payment institution with a license to operate in the European Union (EU) as well as internationally.
Last but not least, is news from Michael Klena, our US-based Lykke USA representative.
Lykke’s US operations are currently “furiously” focused on getting its operations suitably regulated and launched. In February, Lykke USA determined its base corporate structure, defined a detailed product road-map and settled on a regulatory strategy to be deployed as soon as reasonably possible.
One possible reason for the furious haste is the news that Lykke’s US Team is having “over a dozen conversations with potential business partners to begin a flow of deals as soon as we are approved”.
Michael was also invited to speak as a panellist at a conference in Atlanta, focusing on distributed ledger technology growth within financial services. We don’t know exactly how many people Michael was able to convert, but judging by rapturous applause following his remarks, we think Lykke’s vision went down rather well.
One key development from the US is the decision to split Lykke’s regulatory burden into 4 or 5 separate “lines” to better align itself with the current structure of US financial regulation which sports 4 or 5 different regulators. The next milestone for Michael is to submit as many regulatory applications as possible by the end of March.
Globally, we have made significant strides to completing the various regulatory gauntlets set before us, while the prospect of our first trading activity and commercial revenues is now also coming into view.