FCA Authorize Crypto Derivative Firm B2C2 OTC

Wilfred Michael 

Wilfred Michael

Reporter

01 February 2019,
15:38
FCA Authorize Crypto Derivative Firm B2C2 OTC

B2C2, a crypto derivative firm based in the U.K said in an announcement today that is has gotten authorization from the Financial Conduct Authority (FCA) to offers its CFDs offering to the public via its subsidiary B2C2 OTC Ltd.

Contracts for Difference (CFDs) are crypto derivatives that allow users to predict the future price of cryptocurrencies, so they can bet short or long to make a profit. In this case, B2C2 will be in custody of the hedged cryptocurrencies during the period of the contract.

As per the announcement, the company currently offers CFDs for major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and Ripple (XRP).

Sharing his thoughts on the regulatory milestone, B2C2 CEO and founder, Max Boonen said it would finally allow “eligible counterparties and professional clients to gain derivative exposure to the cryptocurrency markets” without worrying about the risks associated with storing cryptocurrencies.

FCA’s Crypto Authorization Catches The Eye

That the Financial Conduct Authority (FCA) has given the green light to B2C2’s CFDs, provide substantial evidence that the regulators are adopting a new approach to the crypto industry, rather than its strict stance a few years ago.

In December 2017, the FCA issued a warning that potential CFD investors “should be aware of the risks involved and fully consider whether investing in cryptocurrency CFDs is appropriate for them.”

Approving B2C2, however, shows that the FCA is finally yielding to the existence of the crypto market and is a massive boost for the industry.

In the last week, the Financial Conduct Authority (FCA) also took a significant step towards crypto inclusion in the economic system by releasing a proposed regulatory framework for cryptocurrencies.

The regulators set an April 5, 2019 deadline as the final day for public comment on the proposed guidelines. If things go as planned, the FCA will release a policy statement confirming the enactment of the new rules at the end of the consultation period.

 

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