Reports said that Blockchain.com, one of the oldest Bitcoin (BTC) infrastructure firms, is strengthening regulation and compliance efforts by securing registration in the Cayman Islands.
It has been reported that the blockchain wallet and cryptocurrency exchange platform Blockchain.com is expanding operations in the Cayman Islands after receiving registration from the Cayman Islands Monetary Authority (CIMA).
However, issued on July 6, the registration officially authorizes Blockchain.com to provide custodial services, operate an exchange and offer over-the-counter crypto brokerage services for institutional clients under the CIMA’s regulatory framework.
Lane Kasselman, the Chief Business Officer of Blockchain.com, pointed out that the Cayman Islands is an important jurisdiction for the company’s business as the local community and regulators have fostered a “robust blockchain business ecosystem.”
“Cayman Islands is a key jurisdiction for us — our parent company is domiciled there and it is a recognised global financial services hub.”
The report said that the latest registration is part of Blockchain.com’s broader commitment to global compliance and regulation in every jurisdiction of the platform’s presence, including the United States. It also intends to help Blockchain.com further support institutional clients, which account for around 50% of the firm’s revenue.
Likewise, headquartered in London, Blockchain.com currently holds money transmitter licenses in the majority of the US states and continues to pursue more regulatory approvals in the country. The firm is also working to seek registrations in countries like Italy, France, Spain, The Netherlands and cities like Dubai.
"As we expand globally, it’s even more important to seek regulatory approvals in key markets to demonstrate our commitment to compliance, work with regulators on thoughtful oversight, and slowly build towards the ultimate goal — a permanent regulatory framework for crypto."
The news comes amid the increasingly expanding global regulation efforts of crypto companies, with many industry companies receiving new registrations and approvals worldwide daily. The aggressive compliance efforts are coming amid the ongoing bear market for crypto as Bitcoin has stayed below its all-time high above $68,000 for nearly nine months so far. According to many experts, Bitcoin and the broader crypto industry needs more regulation to make assets less volatile.
Blockchain.com’s chief business officer is also confident that regulation is a key component of the industry's success. He said that moving from a startup ecosystem to a "forever industry" requires taking regulation seriously, learning how to compromise and valuing the efforts of policymakers.
"The only way to achieve a permanent regulatory framework for crypto is for industry leaders and regulators to work together to ensure consumer protection and investor trust."
Thus, in March 2022, Blockchain.com raised millions of dollars in a funding round from the venture capital firm Lightspeed Ventures and investment management firm Ventures and Baillie Gifford & Co. The funding reportedly increased the company’s valuation from $5.2 billion to $14 billion.