• For the first time, investors can buy and sell cryptocurrencies in a regulated and 100% insured trading environment
     
  • Traditional stock exchanges can now list cryptos such as Bitcoin and Ethereum, to be sold through licensed broker-dealers
     
  • Possible through Blockstation, a Canadian FinTech, which has developed an end-to-end platform for licensed and regulated financial institutions to trade digital assets

Since its launch, bitcoin has operated a bit like the Wild West: little regulation, minimal oversight, and few institutionalized protections for investors. This made sense at the beginning, as one of the core principles of crypto is decentralization - regulation just wasn’t a founding priority.

But widespread bitcoin regulation, and regulation for other cryptos, is coming.

Many governments regard the crypto market too risky to ignore, threatened by the potential for money laundering, fraud, and black market activities. Regulations are a key tool for taming the crypto frontier.

Blockstation, a Canadian FinTech developer, has launched one of the world’s first platforms for the exchange of bitcoin (and eventually other cryptos, as well as security tokens) to be incorporated with a traditional, regulated stock exchange. Our pilot is now live, accepting a limited number of investors to get ahead of the crowd.

Is bitcoin regulation (and crypto regulation) a good thing?

Consider what regulation and government oversight has accomplished for traditional markets. Investors enter the market and trade diverse securities confident in the knowledge that (most) participants play by the same rules and that their funds are protected by deposit insurance.

This confidence can help more investors feel empowered to join the marketplace, injecting more capital worldwide and driving growth for all participants. Simply put, bitcoin regulation (and cryptocurrency regulation in general) could lead to billions of dollars of new capital in the market as mainstream investors realize their digital assets will have the same protection as any other investment.

So, is regulated bitcoin and crypto a good thing? You be the judge...

How Blockstation works with regulators

Blockstation built regulatory compliance and investor protection into its platform from the ground up, making sure it can integrate seamlessly with any stock exchange and its ecosystem of broker-dealers, market makers, and regulators. We’ve worked hard to help tame the Wild West and address many common concerns to protect investors, including:

Concern Blockstation Feature

Market manipulation

Self Trade Prevention (STP) automatically identifies and cancels trades that cross with themselves.

Order sequencing

All orders are processed and matched through a messaging queue in chronological order.

Retail order priority

Every order has an associated account with its professional or retail status, meaning the exchange engine can fill retail orders before professional orders when the bid/offer is the same price.

Front-running

a) No way to jump the queue as all orders are sent to the exchange engine and matched chronologically.

b) Blotter reports contain all order records with a timestamp so the compliance department can identify suspicious activity such as brokers front-running their clients’ orders.

Transparency

Regulators can monitor the source and flow of all equity in the market and view trades in real-time, reducing the risk of fraud, crime and insider trading.

Regulated bitcoin is open for business

Regulation is coming to the Wild West, clearing the way for retail investors and traditional financial institutions to enter the crypto market, increasing the available capital and expanding the potential for cryptocurrencies to become truly mainstream.

Blockstation’s pilot is now live, accepting a limited number of investors from around the globe. Do you want to get involved?