Cryptocurrency market continues to see notable developments. Accordingly, the US-based brokerage firm OANDA, is preparing to start offering crypto trading services in the United Kingdom through its registered subsidiary OANDA Crypto. The crypto subsidiary was established last year following the brokerage’s acquisition of a majority stake in Coinpass, a company registered with the Financial Conduct Authority (FCA).
OANDA Team Takes Significant Steps
The new crypto trading platform will offer trading services for more than 63 cryptocurrency pairs including Bitcoin and Ethereum, with plans to add more tokens and features in the coming years. OANDA’s recent expansion in the UK follows its partnership with the popular crypto trading platform Paxos to launch crypto trading services in the US over a year ago.
The firm recently moved its European operations from Malta to Warsaw, Poland, and subsequently acquired the Polish broker Dom Maklerski TMS Brokers SA, which was rebranded as OANDA TMS. The crypto brokerage firm has chosen regions with typically strict regulatory requirements, first in the US and now in the UK.
Several leading crypto companies have withdrawn their services in the UK since October 2023, following the FCA’s new regulatory guidelines on crypto advertising. Crypto firms like Bybit and Revolut have temporarily suspended their operations in the UK last year, citing the new FCA promotional rules.
The UK and the Crypto Industry
The new advertising rules only allow crypto asset service providers registered with the FCA to promote their activities in the country. The rules also require crypto firms to significantly adapt their online platforms to better warn potential customers about investment risks.
The FCA detected significant non-compliance among crypto firms violating the crypto promotion rules that came into effect on October 8, 2023. The regulatory body emphasized that it issued 450 consumer warnings against crypto asset companies illegally promoting cryptocurrency between October 8 and December 31, 2023.
On the other hand, OANDA’s head of digital assets Lucian Lauerman described the UK market as well-educated and active. He added that the market is becoming more aligned with the traditional markets in which they operate. The regulatory bar has been raised.
