The OTC trading firm and crypto liquidity provider OTC B2C2 obtained regulatory authorization to offer crypto derivatives in the United Kingdom, according to a report published by Coindesk. The so-called CFD Crypto allow investors to speculate on the future price of digital assets for obtaining profit.
At first, the platform will offer investors exposure to bitcoin, bitcoin cash, ether, litecoin, and XRP. Thus, eligible parties and professional clients may gain exposure to the crypto-currency market and avoid the risks associated with the custody of such assets.
The Financial Conduct Authority’s (FCA) authorization is notable since in the past the agency issued alerts regarding crypto CFDs. In November 2017, the authority had said that these products were extremely high-risk, speculative investment. By April 2018, however, the agency had signaled that it would authorize crypto CFDs since they could be financial instruments under the current directives.
More friendly regulator
Thus, the measure shows an evolution of the FCA understanding on crypto-coins. In practice, the regulator has been looking more closely at the crypto ecosystem. While taking steps to protect the investor from the perceived risks of crypto-coins, the agency shows a more positive stance on the blockchain. Moreover, at the end of January, the FCA presented a proposal for guidance on what should be the regulation of crypto-coins in the country.
The product to be released by B2C2 is not the first of its kind in the world. In January of this year, SIX Swiss Exchange had announced the offer of the world’s first crypto-backed derivative.