The London Crypto Currency Exchange (LCCX) launched its initial coin offering (ICO) on Monday 13th March and has raised £1m in less than two days. LCCX intends to be fully regulated by the Financial Conduct Authority (FCA) in order to bring trust to secretive world of cryptocurrency exchanges.
At the same time, the FCA has just granted American-based exchange Coinbase an e-money license allowing it to operate in the UK.
Cryptocurrencies have become more popular over the last 12 months and now there are millions of investors around the world, with 1000s based in London. The existing problem until now has been the lack of regulated business where consumers could purchase Bitcoins or other cryptocurrencies. The market is very secretive with most exchanges not displaying basic company information or addresses on their website leaving consumers very mistrustful of buying and holding investments. This lack of transparency combined with high profile hacks and reports of stolen funds makes consumers even more fearful.
LCCX aims to address the current industry issues of trust and safety by a mix of solutions. The first is regulation by the FCA. The second is to insure client funds against possible hacks. The third is by posting the company details and address clearly on the website. In addition, many exchanges do not reply to clients’ support tickets for weeks or months, LCCX plans to offer 24/7 support to clients meaning they no longer have to wait weeks for a response.
The company has been founded by Tech City entrepreneur and former FCA lawyer, Robert Benwell, with the mission of making LCCX the most trusted crypto exchange in the world.
The proposal LCCX has made to the market has been well received with investors sending over £1m in the first 48 hours of the ICO going live. Benwell said, “We’ve only done a limited amount of marketing in the last couple of weeks and didn’t expect to get off to such an fast start. I feel we provide the solution every investor and trader has been demanding for months and I think the investment so far proves that. Our ICO runs for another 46 days now so I’m confident we’ll raise the full £5m.”
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