Lykke has achieved long awaited milestones: Offchain settlement and Ethereum integration. We will hold an Annual Lykke Coinholder meeting online on June 29. Ether is on LykkeWe are happy to make Ether available for trade in Lykke Wallet with Ethereum fully integrated to Lykke Exchange settlement process.
Lykke smart contract has 2-of-2 multisignature set up, so that every transaction such as trade or withdrawal needs two signatures: by the client's and by the exchange's private key. The contract holds segregated clients balances and provides a mechanism to guarantee funds recovery if the exchange goes offline.
Check out our CTO's recent blog post, where the Ethereum integration is explained, and the smart contract code on Github.
Offchain Settlement We have deployed offchain settlement at Lykke Exchange.
Users can now securely complete trades in state channels, that are opened between the client and the exchange.
The Bitcoin blockchain was built to process about seven transactions per second. That translates to a settlement time of about 10 to 30 minutes per trade, and impose significant limitations for the exchange capacity to settle trades.
Offchain settlement allows to overcome this limitations without compromising the security. The counterparties freeze funds as a collateral on the blockchain and provide the so-called commitments to each other. When both parties agree to the terms of the new trade then commitments are updated. Commitment transaction can be broadcasted at any time on the blockchain to get frozen funds back and close the channel.
Read our Offchain Settlement FAQ
Lykke Regulated Entities
Demetrios Zamboglou, Lykke CBDO:EU Broker license update
Our application for European Investment Firm (CIF) license for Lykke Cyprus Ltd. is on the fast track at CySEC (Cyprus Securities and Exchange Commission). The team is preparing an official response (answers and additional documents) to the first letter recently received from CySEC.
EU Electronic Money Institution license update
The application for EMI is ready to be submitted to the Central Bank of Cyprus (including a pledge of 350,000 Euro Capital Requirement). Lykke EMI is engaged with various banks for supporting the payment processing strategy. New systems and controls are now in place – pending activation for electronic payments.
UK MTF license update
The MTF (Multilateral Trading Facility) package is facing some new delays due to the updated FCA requirements for UK based MTF. We are updating the IT Strategy document and the application package to match the new requirements of the FCA.
Margin trading update
The final release of the Lykke platform for margin trading is awaited in June for a limited list of jurisdictions under Vanuatu's Dealer in Securities license. Traditional leveraged FX & CFD products will be extended by BTC and ETH trading.
Michael Klena, Director of Lykke US:US has fragmented regulations, in that different products are overseen by different regulators. And each regulator has different levels of approval, depending on trust/experience with the regulator and capital segregated.
Lykke's approach is like climbing a ladder. We will get approval for the lowest levels first. Then we can apply for higher & higher regulation approvals. This takes time, but it is the best way to achieve our goals.
Applications have already been submitted to SEC, US Treasury and IRS with CFTC and OCC to follow shortly. We expect our first approvals for a very limited set of products by the fall. Each quarter we expect to add more & more products as approvals come in. By the end of 2018, we expect to be able to trade everything that Lykke offers.
Seamus Donoghue, Director of Lykke Singapore:We have a new addition to the team in Singapore - Venky Sethuraman has joined us and as the former head of equities with Standard Chartered and previously Citibank brings us great institutional experience that we can leverage across the region.
We are in the final stages of choosing legal council to assist us with our Singapore regulatory applications to enable us to launch a fully tokenized securities exchange. This would allow us to handle security related ICO/ITOs as well as provide a venue for secondary trading. It has been challenging to find firms that have any in-depth understanding of tokenized assets but we have managed to narrow it down to a strong shortlist. Given the local Singapore retail market is relatively small, our initial licensing will be for accredited investors and institutions as this will allow us to provide services to the large institutional pools of private wealth in Singapore. Once the application process has begun, we expect the process to be completed in roughly 8-10 months. We will look to partner with local incumbents to tap into the Singapore retail market.
As we prepare our regulatory applications for securities trading we expect to roll out crypto and tokenized FX products in the 3 to 4 months assuming that the legal opinion that this will not jeopardize our regulatory applications. That legal opinion should be confirmed shortly. The launch of the Singapore wallet will enable all retail investors to access the FX and cryptocurrencies, while securities, once we obtain regulatory approval, will only be available to accredited investors. We are in the process of working with compliance partners to gap our AML and KYC policies to MAS standards and ensure our Terms and Conditions are consistent with Singapore Law. We expect to announce a launch date in the coming month.
Annual Coinholder MeetingWe are proud to have more than 3'000 Lykke coin holders from 87 countries today. Each 1 LKK embodies an entitlement to the 1/100th of a Lykke company share.
We plan to hold our annual meeting digitally on the 29th of June, 15:00 Zurich time. The link will be sent out in advance.
We will report for the first year of operations, provide insights on our new projects and initiatives, and answer your questions.
Please note that to be able to vote you would need to complete your identification process in the Lykke Wallet (selfie, ID, proof of address).
Lykke life speeds up - stay tuned!
Richard Olsen and Sergey Ivliev,
Founders of Lykke
All impressive stuff!
also the value of lykke is still rising every day.
sad for me, cause i wanted to buy so many more
there is nothing like lykke out there! get on board or get left behind, choice is yours.
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kawacaki still very supportive of LYKKE!!
