Jamaica, through its Stock Exchange, has decided to start trading cryptocurrencies and tokens. The exchange has selected a fintech company from Canada called, Blockstation, to help facilitate the trading of cryptocurrencies on the Jamaica Stock Exchange (JSE).
The JSE Partners with Blockstation
Kirk Brown, who is the Head Trader for Brokers at the JSE, said that it was very important for investors to start investing in cryptocurrencies through traditional financial institutions. On her part, the Managing Director of JSE, Marlene Street Forrest, noted that, “We are very comfortable moving forward based on the training and support provided by Blockstation, and because their trading platform incorporates familiar compliance rules to ensure a fair marketplace.”
Before this deal was completed, members from the JSE, as well as representatives from local regulators, had a workshop. During that time, Blockstation also completed the Beta testing in Jamaica with all the participating companies.
Understanding the Crypto Sector
The JSE has already signed a Memorandum of Understanding (MoU) with Blockstation. The exchange was incorporated in 1968 and its market cap rose to more than $1.19 trillion. This was after a successful launch of an Initial Public Offering (IPO). At the moment, JSE has about 74 listed companies. Additionally, it has about 107 listed securities.
The cryptocurrency sector is getting a lot of recognition from institutions. This is despite the fact that the market is still young. Since its launch 9 years ago, many other digital currencies and tokens have come into existence. The growth of the crypto market has had its own share of challenges. Price volatility is still its biggest problem. The fact that the market is very unpredictable has kept many potential investors away.
Despite the challenges facing the sector, many institutional investors are investing in it. Good examples are the world’s largest banks, Goldman Sachs and Barclays, setting up crypto trading desks. Many other companies are developing their own platforms. Blockchain technology, the technology behind digital currencies, is becoming popular among companies. Companies like Samsung have already started using the technology to monitor their supply chain departments.
The cryptocurrency market has lost more than half of its value in 2018 alone. Cyber crime has caused the market losses of more than $1 billion. Other cases of drug trafficking and illegal trade are still on the rise. These cases have led to negative effects on the markets especially because governments are either regulating or banning crypto trade. Even though regulations may work well in the long-term, short-term effects may be negative.
Join our Telegram Group To Stay Up To Date With Crypto News