Bitbay has become a fully licensed cryptocurrency exchange in Estonia which introduced stricter rules for the industry last year. The European trading platform has recently passed an independent audit that confirmed its “solvency, security and fiscal responsibility.”
Audit Examines AML and KYC Procedures at Bitbay
Bitbay, a leading crypto trading platform in Europe, is now a fully licensed and regulated exchange under Estonia’s stringent regulations imposed last fall. The company has been audited by an independent third party which thoroughly examined its accounting practices, including anti-money laundering (AML) and know-your-customer (KYC) procedures.
The inspection also verified the platform’s financial assets, including crypto and fiat funds, as well as the current state of user accounts. Income, revenue, and profit were analyzed too, and according to an announcement published on the exchange’s website on Wednesday, the audit has confirmed Bitbay is solvent, secure, and fiscally responsible.
Estonia tightened its licensing regime for crypto service providers in late 2020 and they are now required to meet the same standards as traditional financial institutions under the country’s Money Laundering and Terrorist Financing Act. In December, the Baltic nation’s Financial Intelligence Unit revoked more than 1,000 licenses previously issued to virtual currency firms.
Bitbay referred to the successful audit as a milestone, not only for the exchange itself but also the crypto industry in general. The company noted that “regulation is fundamental to creating a secure future for digital money and cryptocurrency exchanges.” It insisted that “only by bringing cryptocurrency into the light will we be able to open it up for everyone,” emphasizing its commitment to work with authorities to “transform how deposits, trades, and tax flow transparently to, through and from crypto exchanges.” Bitbay further pointed out:
For the million or so users on our platform across Europe, this certification should provide further comfort that their assets are in good hands.
Bitbay also published key figures from its financial statement. According to the provided data, the company has generated €8,849,686 in net revenue between October 2019 and December 2020, resulting in a net profit of €6,491,835 after tax. Its share capital is €100,000.
The crypto exchange was launched in Poland in 2014 but in the spring of 2018, it decided to leave its home country, citing difficulties with access to banking services. Bitbay announced a decision to move its exchange operations to Malta, another EU member state. The government of the “Blockchain Island” has been working to create a crypto-friendly business climate. Digital asset trading platform Crypto.com recently became the country’s first licensed exchange to offer bank transfers.
Do you think more cryptocurrency exchanges will be able to meet Estonia’s stricter regulatory requirements? Tell us in the comments section below.