As a seasoned crypto investor with years of experience navigating the volatile and rapidly evolving digital asset market, I can’t help but feel a sense of excitement and optimism upon hearing about One Trading’s recent regulatory milestone in Europe.
A prominent European crypto trading platform, One Trading, has secured regulatory consent from Dutch financial authorities, enabling it to provide derivatives services to local clients.
On Monday, the company revealed that it has obtained an Organised Trading Facility (OTF) license from both the Dutch Financial Markets Authority (AFM) and the Dutch Central Bank (DNB). With this permit, the firm will introduce perpetual futures contracts to its European clientele, marking a significant first as the AFM and DNB have not granted an OTF license for such instruments in over three years.
Regulatory Milestone
Under this license, One Trading gains exclusive rights to operate MiFID II-compliant platforms for perpetual futures trading in the European Union. Furthermore, it sets a pioneering precedent as the inaugural cash-settled perpetuals exchange in both Europe and the United Kingdom.
Users throughout the region can look forward to trading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) under the protective laws of the EU. This prospect is open to all, including experienced and novice traders, providing them with a valuable platform for financial expansion and self-reliance.
Traders can reap advantages from the diverse offerings of One Trading. The business aims to roll out product development, execution, safekeeping, and instantaneous settlement for cryptocurrency derivatives under a solitary regulated platform, thereby obviating the necessity for external clearing houses.
Modernizing Futures Trading
As a European crypto investor, I’m excited to hear that our exchange is bringing crypto derivatives onshore and classifying them as “traded on a regulated trading venue” instruments. This move aims to strengthen the regulatory framework in Europe and offer more sophisticated investment options for us. In comparison to traditional futures contracts from exchanges like CME or Eurex, these new products provide a modern and innovative approach to derivatives trading in the crypto space.
One Trading’s product line is designed to provide traders with simpler, more precise, and less expensive alternatives to conventional futures. These offerings represent a more accessible choice for investors looking for sophisticated financial tools.
In the long run, CEO Joshua Barraclough expressed that the company aspires to be known as the leading platform for futures trading within the industry.
“Barraclough expressed his excitement about reaching this significant accomplishment, a result of countless hours of dedication and creativity. Our ultimate goal as a company is to empower all types of clients with the ability to take long or short positions on any asset, employ any asset as collateral, settle transactions immediately, and continuously roll contracts.”
Acknowledging the Team’s Hard Work
I commend the company’s team for their unwavering commitment and tireless efforts in securing regulatory approval. This achievement will pave the way for us to build a platform that not only meets but surpasses the most stringent regulatory standards.
“Reaching this latest achievement will help us provide top-tier offerings for all client categories, commencing with Bitcoin and Ethereum solutions, which presently lack EU-regulated alternatives in the onshore market. According to Barraclough, this is merely the first step in our mission to revolutionize the interaction between digital assets and traditional securities trading.”
The firm intends to roll out a new real-time feature for settling derivatives trades, ensuring updates every minute or even more frequently across all markets. This cutting-edge capability enhances the company’s current technology, boosting its thriving and expanding spot market operations.
As a crypto investor, I can tell you that One Trading’s innovative approach sets it apart in the European trading scene. By seamlessly integrating custody and settlement services using Distributed Ledger Technology (DLT), One Trading becomes the trailblazer, enabling us to use crypto-assets as collateral for trading regulated financial instruments – a game-changer in our investment strategies.
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2024-07-29 14:13