OANDA, a leading United States-based crypto brokerage firm, has announced its expansion into the United Kingdom market with the launch of its crypto trading services through its subsidiary, OANDA Crypto. This strategic move follows OANDA’s acquisition of a majority stake in Coinpass, a Financial Conduct Authority (FCA)-registered company, which led to the establishment of the crypto subsidiary last year.
OANDA enters the UK with 63 crypto trading pairs
The newly launched crypto trading platform by the firm will offer a wide range of trading services, covering over 63 cryptocurrency pairs, including popular options such as Bitcoin and Ethereum. With plans for continuous enhancement and the addition of more tokens and features in the future, OANDA aims to provide a comprehensive and competitive offering to crypto traders in the UK.
This expansion into the UK market comes after the firm successfully initiated crypto trading services in the United States over a year ago, in collaboration with Paxos, a well-known crypto trading platform. OANDA’s decision to enter the UK market aligns with its strategy of targeting regions with robust regulatory frameworks and a strong focus on consumer protection and compliance.
In line with this strategy, OANDA recently relocated its European operations from Malta to Warsaw, Poland, through the acquisition of Polish broker Dom Maklerski TMS Brokers SA, subsequently rebranded as OANDA TMS. This strategic move underscores its commitment to operating within regulatory environments that prioritize transparency and regulatory compliance.
The timing of the firm’s expansion into the UK market is significant, given the regulatory developments in the country. Since October 2023, several leading crypto companies have suspended their services in the UK following the introduction of new regulatory guidelines by the FCA regarding crypto advertising.
Navigating the regulatory landscape and strategic approach
Notable examples include Bybit and Revolut, which temporarily halted operations in response to the FCA’s promotion rules. The new advertising regulations imposed by the FCA restrict the promotion of crypto-related activities solely to registered virtual asset service providers.
Additionally, these rules mandate crypto firms to enhance their online platforms significantly to ensure clear communication of investment risks to potential customers. The FCA’s enforcement efforts have been robust, with the regulator issuing 450 consumer alerts against virtual asset companies found to violate the promotion rules between October 8 and December 31, 2023.
Despite the regulatory challenges, the firm remains optimistic about the prospects of the UK market. Lucian Lauerman, OANDA’s head of digital assets, emphasized the market’s high level of education and activity, characterizing it as increasingly aligned with OANDA’s traditional operating markets.
Lauerman acknowledged the elevated regulatory standards in the UK, noting that the regulatory bar has been raised, reflecting a commitment to fostering a safer and more transparent environment for crypto trading. OANDA’s expansion into the UK market through its subsidiary, OANDA Crypto, demonstrates its strategic intent to capitalize on the growing demand for crypto trading services while navigating the evolving regulatory landscape.
By leveraging its expertise and experience in operating within strict regulatory frameworks, the firm aims to establish itself as a trusted provider of crypto trading solutions in the UK, catering to the needs of both seasoned traders and newcomers alike.
