April 19, 2024
OANDA Approved for Cryptocurrency Trading in UK
Latest Cryptocurrency News

OANDA Approved for Cryptocurrency Trading in UK

OANDA, the United States-based crypto brokerage firm, is set to launch its crypto trading services in the United Kingdom through its subsidiary, OANDA Crypto. The establishment of the crypto subsidiary followed OANDA’s majority stake acquisition in Financial Conduct Authority (FCA)-registered Coinpass last year. The upcoming crypto trading platform will facilitate trading for more than 63 cryptocurrency pairs, including Bitcoin and Ether. The firm intends to broaden its offerings by introducing more tokens and features in the future.

This expansion into the U.K. follows OANDA’s venture into crypto trading services in the U.S. over a year ago, in collaboration with Paxos, a renowned crypto trading platform. OANDA recently shifted its European operations from Malta to Warsaw, Poland, through the acquisition of the Polish broker Dom Maklerski TMS Brokers SA, later rebranded as OANDA TMS.

OANDA’s strategic choices for expansion involve targeting regions with stringent regulatory requirements, as seen first in the U.S. and now in the United Kingdom. Notably, several prominent crypto companies withdrew their services from the U.K. in October 2023, following the introduction of new regulatory guidelines by the FCA regarding crypto advertising. Companies like Bybit and Revolut temporarily halted operations, citing compliance challenges with the FCA’s promotion rules.

The FCA’s guidelines restrict the promotion of virtual asset services in the U.K. to only those registered with the FCA. Crypto firms are also required to enhance their online platforms to provide clearer warnings about potential investment risks. The FCA identified “significant levels of non-compliance” among crypto firms violating these rules, issuing 450 consumer alerts against unauthorized crypto promotions between October 8 and December 31, 2023.

Lucian Lauerman, OANDA’s Head of Digital Assets, emphasized the appeal of the well-educated and active U.K. market. Lauerman noted that the market is aligning more closely with OANDA’s traditional operating markets, attributing this to the elevated regulatory standards set by the FCA. He stated, “The regulatory bar has been set slightly higher,” reflecting the evolving dynamics of the crypto landscape in the United Kingdom.

Image by vwalakte on Freepik

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