OANDA Crypto Approved for Operations in the UK
Date: 2024-02-27 Author: Dima Zakharov Categories: IN WORLD
Expanding Services in the UK
American cryptocurrency brokerage firm OANDA is set to offer cryptocurrency trading services in the United Kingdom through its subsidiary, OANDA Crypto. The crypto subsidiary was established last year after the brokerage firm acquired a controlling stake in Coinpass, registered with the Financial Conduct Authority (FCA).
Diverse Trading Opportunities
The new cryptocurrency trading platform will provide trading services for over 63 cryptocurrency pairs, including Bitcoin (BTC) and Ethereum (ETH). Plans are in place to introduce more tokens and features in the coming years.
Strategic Expansion
OANDA's recent expansion into the UK comes over a year after the firm initiated cryptocurrency trading services in the United States in partnership with Paxos, a popular cryptocurrency trading platform. The company recently relocated its European operations from Malta to Warsaw, Poland, acquiring Polish broker Dom Maklerski TMS Brokers SA, later rebranded as OANDA TMS.
Adhering to Regulatory Standards
The cryptocurrency brokerage firm strategically chooses regions with stringent regulatory requirements, starting with the US and now expanding into the UK, contrary to the trend. Notably, several leading crypto companies ceased their UK operations since October 2023 following the implementation of new FCA regulations on cryptocurrency advertising.
Enhanced Advertising Regulations
The new advertising regulations allow promotion in the country only for virtual asset service providers registered with the FCA. Additionally, firms are required to significantly adapt their online platforms to better inform potential clients about investment risks.
Addressing Regulatory Concerns
FCA identified a "significant level of non-compliance" among crypto firms regarding the regulatory requirements for cryptocurrency promotion. The regulator issued 450 warnings to consumers between October 8 and December 31, 2023, regarding companies illegally promoting cryptocurrency.
Market Outlook
Lucian Lauerman, Head of Digital Assets at OANDA, described the UK market as "highly educated and active," noting a shift towards markets traditionally served by the company. He highlighted that the regulatory standards are slightly higher in the UK.
