Institutional investors have expressed strong interest in the opportunity of trading cryptocurrencies, but the regulations in place for traditional fiat custody licensing is almost every country around the world prevents this from happening. To get around these regulations, licensed stock exchanges have created various forms of indirect cryptocurrency ownership, such as Exchange Traded Products (ETFs) and Contracts for Difference (CFDs).
Bitcoin and other cryptocurrency ETFs have caused an ongoing battle between investment firms and financial regulators in America. The debate lies in the varying definitions of what a cryptocurrency actually is - property, commodity, security or currency. There are different laws regarding each. However in the UK, there have been more defined practices established to allow for OTC trading products.
Industry leading Liquidity
Some of the biggest arguments against trading cryptocurrencies are security issues, regulation and lack of liquidity. B2C2 has now address all three problems by officially receiving authorization from the UK’s Financial Conduct Authority to create and trade CFDs. The service will only be offered for institutional investors and other professional clients, offering derivative exposure to the cryptocurrency markets.
“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.” - Max Boonen, Founder and CEO of B2C2
B2C2 was founded only in 2015, but has quickly developed some of the most promising avenues for engaging the cryptocurrency market. The company was the first in the UK to offer an OTC trading desk. They deal with all of the most popular and major market cap cryptocurrencies, and offer flexible trading sizes and settlements. They use streaming prices and instant execution via REST and FIX APIs, as well as a web interface with voice trading capabilities. They have direct integration with the largest liquidity hubs, including Simplex Inc., oneZero, Gold-i and Caspian.
In addition, B2C2 was a founding member of the University of Oxford's Centre for Technology and Global Affairs, as well as a member of CryptoUK. CryptoUK is the first self-regulatory trade association for the cryptocurrency industry in the UK. They participate in the Blockchain and Virtual Currencies Working Group in Brussels; the French Cryptocurrency Management Association; and Japan’s Cryptocurrency Business Association.
By: BGN Editorial Staff