US-based cryptocurrency brokerage OANDA is expanding its cryptocurrency trading services in the UK through its registered subsidiary OANDA Crypto, formed after acquiring a majority stake in FCA-registered Coinpass last year.
The new cryptocurrency trading platform will initially offer services for over 63 cryptocurrency pairs, including popular tokens like Bitcoin and Ethereum, with plans for further token additions and feature enhancements in the future.
This expansion into the UK follows OANDA's successful partnership with Paxos to introduce cryptocurrency trading services in the United States over a year ago. The company has recently relocated its European operations from Malta to Warsaw, Poland, by acquiring the Polish broker Dom Maklerski TMS Brokers SA, now known as OANDA TMS.
OANDA's strategic move to enter the UK market aligns with its preference for regions with stringent regulatory standards, mirroring its approach in the United States. The decision comes amidst the backdrop of leading cryptocurrency companies withdrawing their services from the UK due to new regulatory guidelines on cryptocurrency advertising introduced by the FCA in October 2023. Notably, companies like Bybit and Revolut suspended operations in the UK last year, citing the FCA's updated promotional rules, which only permit registered virtual asset service providers to advertise their offerings and necessitate significant adjustments to online platforms to warn users about investment risks.
The FCA identified "serious breaches" of cryptocurrency promotion regulations by firms operating in violation of the guidelines introduced on October 8, 2023. During the period from October 8 to December 31, 2023, the regulator issued 450 consumer alerts against virtual asset companies found to be illegally promoting cryptocurrencies.
Despite regulatory challenges, Lucian Lauerman, head of digital assets at OANDA, expressed optimism about the UK market, describing it as well-educated and active. He noted the market's growing alignment with OANDA's traditional operating markets and emphasized the importance of meeting higher regulatory standards in the region.
