A cryptocurrency firm, B2C2, which provides liquidity for all the top currencies in the market – Bitcoin [BTC], Ethereum [ETH] and XRP, Litecoin, Bitcoin Cash, and Ethereum Classic [ETC], has received a green signal from the United Kingdom’s regulatory body, the Financial Conduct Authority [FCA] for its UK subsidiary, B2C2 OTC.
Additionally, the firm is well-known for providing liquidity to cryptocurrencies in currencies such as the United States Dollar, Japanese Yen, British Pound Sterling, Singapore Dollar, Australian Dollar, and Canadian Dollar.
According to the firm’s official announcement, B2C2 OTC has received the authorization of the regulatory body to arrange and deal in Contracts for Difference [CFD], acting as an add-on to its global exposure. The financial regulatory body has not only given authorization to the firm but will also be regulating the CFD.
This product is available for only eligible counterparties and professional clients. Contract for Difference [CFD]s refers to a method of trading that allows individuals to trade and invest in cryptocurrencies by entering into a contract with a broker, instead of opening a position directly in the cryptocurrency market.
The founder and CEO of B2C2 stated:
“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.
Along with the company benefiting directly from the regulator’s decision, this marks a huge milestone for the Financial Conduct Authority as the regulatory stance of the government is still unclear. This is the first time the regulatory body has given authorization for the cryptocurrency CFD.
Moreover, the Chancellor of the Exchequer launched a cryptocurrency taskforce, Cryptoassets Taskforce, which is formed by three major bodies, Financial Conduct Authority, Bank of England, and HM Treasury, in March 2018. The recent report by the task force had stated that Bitcoin and other cryptocurrencies are too volatile to be a good store of value and that they are not “widely accepted” as a means of exchange.