The GSTechnologies Ltd (LON: GST) share price surged 19.35% after revealing that it had submitted its stablecoin application for admission to the UK Financial Conduct Authority (FCA) Regulatory Sandbox.
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Investors cheered the move that would lead to the launch of GSTechnologies’ stablecoin once the FCA approves it. The application for admission to the FCA’s Regulatory Sandbox is a crucial component of the company’s stablecoin activities as a regulated entity.
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GSTechnology has the ambitious goal of being the first company licensed by the UK FCA to issue stablecoins and provide regulated stablecoin-based payment services to customers in the UK and the rest of the world.
Given the many crashes witnessed in the cryptocurrency industry over the past year as the crypto winter took out weak companies, exchanges, and crypto miners and crashed well-established stablecoins, GST’s desire to issue a regulated stablecoin is admirable.
While we cannot speculate on whether GST’s regulatory sandbox application shall be accepted, the company is confident in its plans. As a crypto enthusiast, I would love to see the FCA approve the application, encouraging other firms to follow a similar path.
GS Fintech Ltd, its UK incorporated blockchain focussed business division, submitted GSTechnologies’ application with legal advice from Pinsent Masons LLP. It is now up to the FCA to determine whether GSTechnologies can issue a regulated stablecoin.
GST’s ultimate goal remains to be the first public company to obtain an electronic money license from the FCA to issue stablecoins and provide payment services based on the same. The company promised to update investors on the progress and outcome of its application.
Tone Goh, GSTechnologies Chairman, commented: “We continue to make significant progress with our GS Money ambitions, and the submission of the application for our stablecoins to be admitted to the FCA Regulatory Sandbox is a key step. We believe the UK market needs a trusted UK-based provider to offer regulated electronic money and payment activities specifically related to stablecoins. I am confident GST has the technology and operational readiness to be a leader in this business, and I look forward to providing further updates in due course.”
*This is not investment advice.
GSTechnologies (GST) share price.
The GSTechnologies share price rose 19.35% to trade at 0.37p, from Friday’s closing price of 0.31p.
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