The UK watchdog, Financial Conduct Authority (FCA) has granted permission for London based firm B2C2 OTC Ltd to deal in cryptocurrency CFDs.

“Contracts for Difference” (CFDs) are designed for traders to predict crypto price fluctuations allowing them to profit from rising or fallings markets. The FCA’s acceptance of the B2C2 OTC Ltd application is seen as unexpected given the stance of the UK regulator last year when it said that it was unlikely to give any credence to CFDs. At the time it stated:

“Firms conducting regulated activities in cryptocurrency derivatives must, therefore, comply with all applicable rules in the FCA’s Handbook and any relevant provisions in directly applicable European Union regulations.”

B2C2 OTC’s CFD product now offers exposure to Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC) and Ripple (XRP), which the company’s founder Max Boonen suggests gives traders opportunities to become involved in the markets without the “risks associated with crypto custody.”

While the FCA has reportedly been considering a more direct role in managing cryptocurrencies and tokens, a new consultation paper released last week has been seen as an attempt to make things clearer for investors and the cryptocurrency community for future regulatory purposes. A statement from the FCA indicated a need to clarify current guidelines and changes in how cryptocurrencies are regulated, suggesting that the paper “will alert market participants to pertinent issues and should help them better understand whether they need to be authorized and what rules or regulations apply to their business.”

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay
Load More Related Articles
Comments are closed.

Recommended for you...

Argentina Goes With Bitcoin to Settle Export Deal

Argentina has made history by recently completing an export deal with South American neigh…