The Isle of Man-based cryptocurrency staking company KR1 is preparing to move its stock listing to the London Stock Exchange’s main market. The company currently trades on the smaller Aquis Stock Exchange.
The move is scheduled to take place next month. Co-founder Keld van Schreven spoke with the Financial Times about the planned transition.
Van Schreven described the listing as a “starter gun” for crypto firms on the LSE. He believes this could encourage other cryptocurrency companies to pursue similar listings.
KR1 operates in the staking sector of the cryptocurrency industry. Staking involves validating transactions on blockchain networks in exchange for rewards.
The company plans to establish a placing programme as part of the uplisting process. This programme will allow KR1 to issue new shares to investors.
The funds raised will be used to expand the company’s staking operations. This expansion would allow KR1 to increase its blockchain validation activities.
KR1 will not be the first cryptocurrency company on the London Stock Exchange’s main board. Argo Blockchain currently trades on the main market under the ticker ARGO.
Argo Blockchain is a bitcoin mining company. The firm has announced plans to delist from the exchange in December.
The delisting will proceed once a court approves Argo’s restructuring plans. This means KR1’s arrival will roughly coincide with Argo’s departure.
Other digital asset companies also have a presence on the LSE. These include London BTC Co. and Panther Metals.
These companies operate as digital asset treasury firms. Their crypto involvement consists of buying and holding digital assets rather than active operations like staking or mining.
Van Schreven said the regulatory environment in the UK has become more open to crypto companies. The Financial Conduct Authority has increased its focus on digital assets.
The most visible change in UK crypto regulation was the recent lifting of a retail ban. Retail customers can now access exchange-traded products linked to cryptocurrencies.
Following this change, major asset managers listed crypto investment products on the LSE. BlackRock and Bitwise both launched their flagship crypto investment vehicles on the exchange.
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