HomeTodays NewsBitcoin wouldn’t meet the criteria for SDX’s platform, claims SIX’s Securities and Exchanges Head
Bitcoin wouldn’t meet the criteria for SDX’s platform, claims SIX’s Securities and Exchanges Head
May 7, 2019
Lately, the digital asset space has witnessed a rising number of institutional giants leveraging cryptocurrencies or its underlying blockchain technology for its operations. One such institutional giant is SIX, Switzerland’s stock exchange, which, in an attempt to digitize traditional assets, announced its plan to issue a native token on its platform.
According to Thomas Zeeb, Head of Securities and Exchanges, the new tokens and an initial digital offering [IDO] service will go live in early 2020. With its latest move, the exchange platform seeks to tokenize existing securities like equities, fixed income, and funds. Zeeb also speculated that the token might eventually replace the share one day.
The SIX Digital Exchange or SDX, however, will not trade existing cryptocurrencies. The reason behind not trading digital assets is the relative anonymity of the coin’s origin, which the SIX official described as being a “fatal flaw.” He added,
“We have responsibilities in terms of ensuring that appropriate anti-money laundering and transaction monitoring processes, as is the case today in the traditional world, are in place. The way bitcoin is currently set up and traded, it wouldn’t meet the criteria for SDX.”
Zeeb also revealed that if the current cryptocurrency space could be “legitimized” using know-your-customer and know-your-coin methods, Swiss-based SDX might consider collaborating with cryptocurrency exchanges in the future by creating “necessary connectivity”.
The exchange platform had announced its plans to test blockchain integration in February 2019.