Announced on Jan 31, 2019, FCA grants authorization to a UK subsidiary of one of the largest cryptocurrency liquidity provider B2C2. Following the green signal, the subsidiary called, ‘B2C2 OTC Ltd’ can deal in Contracts for Difference (CFDs).
FCA Authorized Crypto-Specific CFD
For the first time, UK’s financial regulatory body, FCA (Financial Regulatory Authority) step ahead to grant green light for crypto specific CFD or Contract for Difference. Accordingly, the B2C2 OTC Ltd.., can now offer cryptocurrency backed CFD to its clients. While in contrast, other firms have offered for the derivative product, the latest CFD approval by British regulator is the newest one.
The announcement appeared today, i.e Thursday, on Jan 31, 2019 – it reads that;
B2C2 OTC Ltd. is now authorized and regulated by the UK’s Financial Conduct Authority to arrange and deal in Contracts for Difference (CFDs) with eligible counterparties and professional clients.
Specifically ‘eligible counterparties and professional clients’ of B2C2 OTC Ltd., will receive exposure to cryptocurrency market with firm’s CFDs. Since the company is first to be regulated and authorized by FCA for CFDs, Max Boonen, its founder and CEO says;
“We are excited to have received authorization from the FCA to introduce a cryptocurrency CFD product. He said that, Eligible counterparties and professional clients can now gain derivative exposure to the cryptocurrency markets, benefiting from the competitive pricing and liquidity they’re accustomed to receiving from B2C2 while avoiding the risks associated with crypto custody.”
Beside cryptocurrency liquidity provider, B2C2 is also a top name in OTC trading or OTC desk. Established in 2015, its head office is located in the United Kingdom, having offices in London and Tokyo. Moreover, it is already working with the major names of liquidity center such as oneZero, Simplex Inc., Gold-i and Caspian. Nevertheless, the demand for equity market with crypto is quite promising and the bulletins of FCA approving crypto-backed CFD’s is likely positive news for the firm using liquidity provider’s service.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com