HAYVN, the cryptocurrency platform targeting institutional and high-net-worth investors, has secured in-principle approval (IPA) from the regulatory body of the Abu Dhabi Global Market (ADGM).
HAYVN aims to provide an over-the-counter cryptocurrency platform and storage service to family offices, hedge funds, asset managers and UHNWIs to reflect the warming sentiment to this asset class among sophisticated investors.
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Founders Ahmed Ismail and Christopher Flinos have recently told PBI of the need to address concerns that institutional investors will understandably have regarding cryptocurrency in relation to custody, liquidity and regulation.
“We need banks to be able to advise their clients to use the HAYVN platform, making sure that their clients have access to cryptocurrency in an environment that matches their type of regulatory framework,” Flinos told PBI in March.
“You can buy it on our platform transparently, and store it in a regulated environment.
“You will be giving order to report on your holdings as you would normally expect to in a private bank and we have the liquidity on our platform, to enable you to buy and sell as you need.”
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By GlobalDataThey see the Abu Dhabi Global Markets regulatory framework as the most advanced for cryptocurrency in the world, but have plans to also obtain regulation in the UK and elsewhere.
Cryptocurrency in Abu Dhabi
Speaking of receiving IPA from the Abu Dhabi regulators, Ismail says: “It is an honour to achieve an in-principle approval and to gain legitimacy from the world-leading standard provider in digital asset regulation.
“The Gulf is renowned as a centre of finance and innovation, so we are delighted to be one step closer to operating in the region.
“HAYVN seeks to recalibrate the standards of digital currencies and demands a higher standard for investors; today’s approval is a vital step forward in achieving this.”
Flinos added: “Digital currencies have the potential to transform capital markets and offer investors an exciting new asset class to diversify their portfolios.
“However, we believe this can only happen if institutional investors get on board, and they won’t do this until our nascent industry embraces effective regulation and compliance.
“Institutional investors are looking for partners that can offer safeguards and critically the confidence that the traditional financial eco-system provides.
“With today’s announcement we intend to fill this gap, to ultimately provide investors with an effectively regulated and fully compliant platform to buy and sell digital currencies safely, securely and efficiently.”
Cryptocurrency bull market ahead?
The cryptocurrency winter has been showing signs of thawing in recent months with Bitcoin’s price rising to highs not witnessed since its bull-run in 2017 which saw its value touching $20,000.
Bitcoin broke through the $9000-barrier for the first time in over a year this weekend, though some commentators remain cautious.
“Breaking $9,000 is another significant price moment for Bitcoin, but I’m still not sold on the idea that it’s up, up, up from here,” says Simon Peters, analyst at eToro.
“We’re due a significant correction still and prices could fall back to as low as $6,500 before the next major rise.
“That said, you can’t ignore the continuing price surge we’ve seen this year, and $10k is now firmly in sight.”
