The Global Stock Exchange (GSX) groupThe Gibraltar-based company has obtained conditional approval to operate a digital asset exchange in Malaysia. The license application received a positive evaluation from the Labuan International Business and Financial Center (Labuan IBFC). Malaysia is a country that has been quite forward looking when it comes to fintech innovation.
GSX is the operator of the Gibraltar Stock Exchange as well as the related blockchain operations.
Labuan IBFC’s digital odyssey began in 2017 with more than 30 licenses approved as digital entities. These business areas range from financial services such as digital banks and insurtech to digital intermediaries such as robo-advisors, exchanges for digital assets, crypto trading platforms, blockchain tokens and e-payment systems.
In a press release, GSX said the motion demonstrates its aim to expand in Asia and operate a regulated digital asset exchange to offer both primary offerings and secondary trading in stocks such as stocks, bonds and mutual funds.
It is GSX’s mission to transform financial markets through the integration of blockchain technology. GSX already has several offices in Asia, including Hong Kong and Singapore.
Subject to compliance with certain conditions by GSX, this new Asian branch of the GSX Group expects access to an SME-oriented marketplace that offers a trading platform for digital securities.
The company states that Andrew PalThe former Chief Strategy Officer of the GSX Group will lead the Asian activities as CEO of GSX Asia.
Pal made the following statement:
“The expansion of the Asian presence of the GSX Group is taking place in view of the increased demand for sustainable and tradable financial products in the ASEAN region (Association of Southeast Asian Nations), particularly with regard to issuing by SMEs. Basically, we want to eliminate the current imbalance between buy-side demand, particularly from pension funds, for regulated ESG products and issuing by companies looking to raise capital with sell-side sellers, including stock exchanges and banks offering financing. With this in mind, we are very excited to create a reliable place to improve the accessibility of capital in the region. “
Farah Jaafar-Crossby, CEO of IBFC commented:
“We welcome GSX Asia to Labuan IBFC’s growing digital fraternity, currently numbering more than 44 licensees. As a digitally friendly jurisdiction, we welcome players seeking a license in a well regulated and monitored jurisdiction offering a wide range of solutions that are “housed” in a tax and currency neutral ecosystem. In addition, I look forward to working with GSX Asia on financial inclusion initiatives in Asia. “
Nick Cowan, CEO of GSX Group, said today that this is another important milestone in their journey to building a global network of digital securities exchanges:
“With our license application approved under certain conditions by the FSA in Labuan, this is another solid seal of regulatory approval in connection with our ongoing efforts to transform global capital markets. We look forward to working with IBFC and contributing to the dynamic fintech sector that is rapidly developing in Labuan. We can hardly wait to serve our customer pipeline and at the same time demonstrate the many advantages that a digital stock exchange can bring to the region. “