Veteran forex broker OANDA is amplifying its foray into the cryptocurrency market, with the opening of a cryptocurrency trading platform specifically designed for UK clients through its newly established subsidiary OANDA Crypto.
Registered with the country's Financial Conduct Authority (FCA), the new offering provides retail and institutional traders simplified access to a range of digital asset investment and trading services.
TLDR
- OANDA launches UK cryptocurrency trading under FCA-registered subsidiary OANDA Crypto following acquisition of Coinpass
- The new platform offers over 63 cryptocurrency pairs including BTC and ETH, with plans to expand the offerings over time.
- OANDA has opted for a strict regulatory environment in the UK despite other cryptocurrency companies suspending their services there
- It follows the company's previous move into cryptocurrency trading in the US via its Paxos partnership last year
- The OANDA chief cites the UK's strong involvement and alignment with its traditional forex markets as a rationale
The launch follows OANDA's acquisition of a strategic majority stake in FCA-certified cryptocurrency company Coinpass last year, consolidating the company's technology infrastructure and regulatory underpinnings. The end result is a unified cryptocurrency trading experience that bridges OANDA's decades of market experience with Coinpass's suite of specialized digital asset products.
Since its inception, OANDA Crypto has supported trading in over 63 cryptocurrency pairs, including major assets such as Bitcoin, Ethereum, and XRP. The list of tokens spans the spectrum from major currencies to altcoins across centralized and decentralized exchange systems. OANDA plans to expand its menus over time as adoption accelerates.
The company is also harnessing Coinpass's links to traditional banking devices to enable seamless deposits and withdrawals between UK bank accounts and cryptocurrency wallets. These paper gateways are essential to attract mainstream audiences that rely heavily on legacy payment paths.
In addition to asset breadth and banking integration, the platform offers sophisticated trading tools for sophisticated investors, such as dynamic charts and indicators powered by leading analysis firm TradingView. At the same time, the experience keeps it simple and easy for beginners to use with educational resources and intuitive user experience design.
OANDA's calculated targeting of regulated jurisdictions to expand cryptocurrencies is in line with the company's heritage in regulated forex and CFD markets such as stock trading. While the lighter environments favored by many local cryptocurrency companies may allow for faster launches, OANDA feels that the strict standards imposed by authorities such as the Financial Conduct Authority (FCA) increase credibility and trust.
The Financial Conduct Authority (FCA) in particular has clamped down on the promotion and advertising of cryptocurrencies through stricter guidelines that have been in place since late 2022. These measures have sparked temporary closures across wide swaths of the industry, with market leaders such as Bybit and Revolut withdrawing operations due to regulatory uncertainty.
However, for OANDA, the FCA's proactive activity validates the UK as a developed market with minimal 'cowboy territory' between operators. OANDA's head of digital assets notes that British traders are savvy but active in the crypto space, mirroring their traditional forex clients. Familiarity makes expansion under existing regulation more attractive despite barriers to entry.
In a similar vein, OANDA moved its mainland European arm from lightly regulated Malta to more stringent Poland last year, signing a local takeover that reflects the preferences of trustworthy jurisdictions. With its foothold now secured in the US, UK and EU, OANDA is fully committed to accelerating the adoption of cryptocurrencies among the world's most valuable financial trading blocs.
