OANDA Crypto to Launch Cryptocurrency Trading Services in UK Amid Strict Regulatory Climate
Summary:
US-based cryptocurrency firm OANDA is launching crypto trading services in the UK via its subsidiary, OANDA Crypto. The platform will offer trading services for over 63 cryptocurrency pairs, including Bitcoin and Ethereum. This follows OANDA's expansion in the US and the relocation of its European operations to Poland. The company is known for operating in areas with strict regulatory requirements. The announcement comes as several leading crypto firms withdrew their services from the UK following the introduction of new FCA crypto advertising rules in October 2023.
US-based cryptocurrency service provider OANDA is preparing to launch in the UK through its subsidiary, OANDA Crypto, a company established last year after the acquisition of a majority interest in Coinpass, an FCA-registered firm. This upcoming platform will enable trading for over 63 cryptocurrency pairs, such as Bitcoin and Ethereum, and plans to introduce more functionalities and coins are in its future roadmap.
This move into the UK market follows OANDA's previous venture into the US, where it partnered with well-known crypto trader Paxos. The company opted for Warsaw, Poland as the new location for its European branch, having acquired and rebranded Polish broker Dom Maklerski TMS Brokers SA as OANDA TMS.
OANDA often chooses to operate in jurisdictions with rigorous regulatory frameworks, such as the US and now the UK. Several top-tier cryptocurrency firms ceased operating in the UK after the FCA introduced new marketing guidelines for cryptocurrencies in October 2023. Companies like Bybit and Revolut temporarily halted their UK operations last year due to these new promotional stipulations.
The updated advertising regulations stipulate that only FCA-registered virtual asset service operators can advertise within the UK and demands that they modify their online platforms to better inform potential clients about potential trading risks.
The FCA documented significant levels of non-compliance among firms that violated the crypto advertising guidelines implemented on October 8, 2023. The regulatory body stated that it had issued 450 public warnings against virtual currency firms unlawfully promoting digital currencies between October 8 and December 31, 2023.
Meanwhile, Lucian Lauerman, Head of Digital Assets at OANDA, described the UK market as highly educated and active. He believes it is becoming more in line with traditional markets where the company operates, with slightly raised regulatory standards.
An attempt to acquire comments from OANDA by Cointelegraph remains unanswered. Despite regulatory uncertainties, permanent bull Vance Spencer remains convinced that 'crypto is inevitable' and decides to fully commit to it.
Published At
2/26/2024 12:05:57 PM
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