B2C2 Trading Company Gets License For Crypto Derivatives via B2C2 OTC CFDs in the UK
B2C2, a U. K. financial company based in London, has received the greenlight from the national regulator to launch a crypto derivative product. This is huge news. As products like the Bitcoin exchange-traded fund (ETF) and physically delivered futures are still uncertain in the U. S., the U. K. is moving forward in order to create a new financial product that will be directly tied to crypto.
The company, which is a liquidity provider for the crypto market, got the green light to make contracts for difference (CFDs), which will be sold to their institutional clients only. According to the company’s official report, FCA will allow them to buy the CFDs from the over the counter (OTC) desk at the company’s platform.
While other companies are already offering this kind of service as well as B2C2, this is the first time that a company actually gets official authorization to do it. Before this, in most of the cases, the brokers offered the products using offshore licenses that were not regulated within the country, this could also let them offer insanely high leverage rates.
This was a very positive move for the image of B2C2, as no company was able to do this by the most conventional regulatory means so far and now, with the authorization from the country’s regulator, they will offer the most legitimate product in the country.
As B2C2 is a fairly smaller company than most of the giants in the market like Kraken, Binance and Coinbase, this will get some traction for the business. The company was originally founded in 2015 by Max Boonen.
According to The Block Crypto, which has also reported on this story, the company was looking for a buyer last year as things seemed very grim at the time, but with this move, there is a big chance that the revenue of the company will skyrocket.
With the most legally verified CFD products in the U. K. market, B2C2 will allow brokers and customers to bet on the future of cryptos and let traders get exposure without even needing to store any tokens by themselves, which can be dangerous if they are not very used to how the technology works.
However, as it was pointed out by The Block Crypto, there is no certainty that these products will actually have a big impact on the company and in the market. Everybody was excited when the CME Group and Cboe Global Markets started with their Bitcoin futures, but the products were simply not very successful in the market.
While this happens, the U. S. market awaits. The world is moving forward to determine the future of the crypto markets and the Bitcoin ETF is still waiting, the same that is happening with ICE’s Bakkt’s physically delivered futures, which are also waiting to be approved.