Laissez Faire (LZF) offers a new digital currency to Fiat exchange platform run by professionals. It aims to provide a secure trading environment working within the US legal standards.
LZF becomes the first digital currency exchange to legally launch its services across 49 states by complying with the financial regulations of each state. The exchange decided to stay out of New York as a way of protesting against the BitLicence regulations proposal. LZF has been trying to comply with all the demanded licenses and regulations of all states except New York, where the BitLicense is seen as a burden and an impediment to innovation.
LZF will be annually investing around $30,000 to maintain their fiat markets and to keep the platform in full compliance with U.S. financial regulations:
“With the deal we signed, we’ll likely only spend around $30,000/year to maintain our fiat markets. Despite what we’ve accomplished, from an investment standpoint LZF has been exceedingly efficient and has operated very frugally since its beginning. ”
LZF supports 30 banks but by manually verifying and confirming two small deposits, users could add non-supported banks to the platform. The company uses the local and international banking partners to act as the custodian for the customers funds, allowing LZF to manage the ledger with FDIC-insured user deposits.
Daniel Pusateri explained to the CoinTelegraph that the “bank acts as the custodian of the funds deposited through LZF.” The company adopted a new management strategy; while the Banks secure the funds, the exchange “simply manages the ledger and acts as a kind of software as a service, which allows us to circumvent state-level money transmitter licensing.”
The platform utilizes similar structure software as a service platform enabling the exchange to use bank-level technologies procedures and other banking systems to autonomously process all of the users’ requests.
Laissez Faire becomes this way the first US-based digital currency exchange to operate legally in the country.