Crypto market making firm Keyrock gains Swiss regulatory approval

Crypto market making firm Keyrock has received regulatory clearance from the Swiss Financial Services Standards Association (VQF).

"Securing the VQF membership reinforces Keyrock's stance on upholding rigorous regulatory standards within the crypto space. As the landscape evolves, our focus remains steadfast on ensuring both compliance and trust in our services,” Keyrock CEO Kevin de Patoul said in a press release sent to The Block.

The VQF is a self-regulatory organization recognized by the Swiss regulator, the Financial Market Supervisory Authority (FINMA).

According to Keyrock's press release, Swiss regulatory approval should provide the market maker with a foothold from which to grow its presence in Europe and across the globe. "This milestone confirms our commitment to engage with regulatory authorities globally to align our operations with the highest level of compliance requirements," Keyrock General Counsel Reza Ghadiri-Zare said.

Keyrock is now actively preparing for compliance with MiCA, the press release added. This follows the market maker's announcement of an expansion into Asia, earlier this year.

Keyrock expands OTC services

After receiving regulatory clearance in Switzerland, the market maker announced plans to expand its fiat on/off-ramp services through its over-the-counter (OTC) trading desk. This expansion will include fiat currencies like GBP and more than 10 other currencies, in addition to the existing USD and EUR pairs.

"We are steadfast in our commitment to offering a specialized OTC solution enriched with a variety of currency options, reflecting our essential belief in flow diversity," Kevin de Patoul added.

OTC trading allows for a more customized approach to swapping assets, as it involves direct interaction between the parties. This service is commonly used for executing larger trades that may not be feasible on traditional exchanges due to liquidity constraints. OTC trading can reduce counterparty risk if transactions take place between two KYC-compliant entities.