The Financial Conduct Authority (FCA) awarded the OTC platform B2C2 an approval to work with crypto derivatives.
The leading OTC platform and liquidity provider B2C2 announced January 31 that its British branch that deals with over-the-counter trading B2C2 OTC Ltd is now licensed to Bitcoin Cash, Ethereum, Litecoin and XRP futures or crypto contracts for difference (CFD) under the regulation of UK FCA.
"We are excited to have received authorisation from the FCA to introduce a cryptocurrency CFD product. 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," commented in the press release B2C2 CEO and founder Max Bunen.
He also believes that CFDs’ advantage lies in the fact that they eliminate risks associated with the storage of crypto assets.
Notably, the British government tightened the regulation of the crypto industry and their derivatives. Moreover, the FCA may still even ban crypto futures, since earlier it warned about CFDs. The entity stressed that CFDs are a rather high-risk and speculative way for investments.
Nevertheless, later the FCA announced it would likely authorize crypto futures, as they correspond to the existing regulations.
Although the regulator has been mulling over plans to tighten control over the crypto industry and even designed guidance to regulate cryptos in the country, it still adopted a more flexible approach regarding the blockchain technology, allowing crypto startups to participate in its regulatory sandbox.