In a strategic move to enhance its presence in the United Kingdom, OANDA, a prominent US brokerage, is gearing up to introduce cryptocurrency trading through its UK subsidiary, OANDA Crypto. This initiative comes after the company’s acquisition of a substantial share in Coinpass, regulated by the UK’s Financial Conduct Authority (FCA). This launch is poised to feature over 63 crypto trading pairs, with an emphasis on Bitcoin and Ethereum, and aspirations to broaden its token offerings in the future.
Strategic Growth and Compliance
OANDA’s growth trajectory includes transitioning its European hub from Malta to Poland’s capital, Warsaw, where it took over local broker TMS Brokers SA, rebranding it as OANDA TMS. The firm has been strategic in selecting regions with stringent regulatory frameworks, mirroring its earlier US expansion through a partnership with Paxos to offer crypto trading services.
Recent UK regulations have pushed several crypto companies, such as Bybit and Revolut, to suspend their services due to the FCA’s stricter guidelines on crypto promotions. Despite this challenging environment, OANDA is moving forward with its UK market entry, bolstered by its compliance with the new advertising standards that mandate registration with the FCA and the need for risk warnings on investment platforms.
Regulatory Landscape’s Impact
The FCA’s recent actions have led to significant enforcement, with 450 consumer warnings issued against unregistered companies for rule violations within a short span. Meanwhile, OANDA is optimistic about the UK’s well-informed and active market, which is increasingly aligning with traditional financial sectors, raising the bar for regulatory compliance.
OANDA’s proactive stance in adhering to the FCA’s stringent advertising rules highlights the company’s commitment to regulatory adherence and customer protection, positioning it as a reliable player in the UK’s evolving crypto landscape.