The GSTechnologies Ltd (LON GST) share price dropped 17.4% after issuing a corporate update regarding its operations. The company noted that its application for admission to the UK Financial Conduct Authority (FCA) Regulatory Sandbox of its stablecoin was still under review.
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Investors were unhappy to hear that the stablecoin had yet to be approved as the FCA extended its review process. Many are worried that the FCA may reject the application, given that other global regulators have adopted a cold approach towards cryptos, especially stablecoins.
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GSTechnologies shares recovered after the company highlighted its progress in other business areas, including the roll-out of services under the GS Money banner based on three initial use cases: borderless accounts, international money transfers and a private stablecoin.
The company’s subsidiary, Angra, operates under the AngraFX brand name as an FCA-approved Authorised Payment Institution (API). The brand helps clients conduct fast, secure, low-cost foreign exchange business and payment services internationally.
AgraFX is the first pillar of the GS Money brand. The company is performing well and is in line with the board’s expectations.
The GS20 crypto asset exchange based in Lithuania is focused on offering spot trading and over-the-counter trading desk services for popular cryptos to a limited group of retail customers and several institutional clients, including some of Angra’s clients, after the soft launch in November 2022.
The soft launch period has been successful according to the company’s plans as it has received valuable feedback from the first customers, which it has used to improve the services offered. The company continues to develop the GS20 crypto asset exchange and will execute a wider rollout of the exchange in H2 2023.
GSTechnologies remains confident that despite the FCA taking longer than expected to review the admission of its stablecoin to the Regulatory Sandbox, it will still approve the application. However, there is no guarantee that the FCA shall approve the application.
*This is not investment advice.
GSTechnologies (GST) share price.
The GSTechnologies share price dropped 17.39% to trade at 0.95p, from Thursday’s closing price of 1.15p but had recouped most of its losses.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.