In a significant milestone for the cryptocurrency market, Belgian crypto market maker KeyRock has achieved a major regulatory breakthrough. On September 26, the company received the green light from the Swiss Financial Services Standards Association (VQF), a respected financial standards organization endorsed by Swiss regulatory authorities. This clearance marks a pivotal moment for KeyRock, signaling its commitment to rigorous compliance and its entry into the Swiss crypto landscape.
KeyRock's journey to Swiss regulatory approval involved a meticulous demonstration of its adherence to stringent anti-money laundering (AML) standards outlined by the Swiss Financial Market Supervisory Authority (FINMA). This endorsement now grants KeyRock the privilege of operating within Switzerland, a jurisdiction known for its exacting regulatory scrutiny.
The nod of compliance came after a comprehensive evaluation of KeyRock's internal controls, processes, and procedures, ensuring strict alignment with AMLA guidelines. This achievement underscores KeyRock's commitment to meeting the high standards set by VQF, a self-regulatory organization respected within Switzerland.
The significance of VQF's backing extends beyond regulatory checkboxes; it amplifies KeyRock's dedication to transparency, integrity, and accountability. In an industry where trust is paramount, this endorsement adds another layer of credibility to KeyRock's profile. It showcases the company's proactive approach to regulatory matters, highlighting its responsible evolution within the crypto sector.
Kevin de Patoul, CEO of KeyRock, emphasized the importance of this milestone, stating, "Securing VQF membership reinforces Keyrock's stance on upholding rigorous regulatory standards within the crypto space. As the landscape evolves, our focus remains steadfast on ensuring both compliance and trust in our services."
KeyRock now joins the ranks of other crypto entities, including Bitcoin Suisse and custodian BitGo, in successfully registering with VQF.
With Swiss approval secured, KeyRock is gearing up for a significant expansion. The Belgian market maker plans to enhance its over-the-counter (OTC) trading desk, providing fiat on/off-ramp services for over ten currencies, including GBP, in addition to the existing USD and EUR pairs.
The OTC trading desk's appeal lies in its personalized approach to asset swaps, allowing direct interaction between parties and leveraging substantial liquidity that traditional exchanges cannot match. Moreover, OTC trading reduces counterparty risk, particularly when transactions involve two Know Your Customer (KYC)-compliant entities.
Reza Ghadiri-Zare, KeyRock's General Counsel, stressed the importance of this expansion, saying, "We are steadfast in our commitment to offering a specialized OTC solution enriched with a variety of currency options, reflecting our essential belief in flow diversity."
This move underscores KeyRock's commitment to providing top-tier service marked by narrow spreads and rapid 24/7 settlements, now accessible across an even wider spectrum of currencies. Expanding the OTC desk's currency offerings will enable KeyRock to extend its services to diverse geographical regions.
"As Keyrock continues to expand its activities into new jurisdictions, this milestone confirms our commitment to engage with regulatory authorities globally to align our operations with the highest level of compliance requirements."
Despite the crypto world's upheavals, such as the FTX exchange's collapse in late 2022, KeyRock has managed to secure $72 million in funding. Currently, the company operates on over 85 exchanges across more than 400 markets. This funding, obtained through a successful Series B round, will be directed towards infrastructure development, scalability tools, and regulatory licensing in Europe, the United States, and Singapore, solidifying KeyRock's position as a resilient and forward-thinking player in the crypto space.