A recent development highlights the entrance of a cryptocurrency exchange into the European market with the acquisition of a Markets in Financial Instruments Directive (MiFID) license. This was achieved through the purchase of a Cypriot Investment Firm, which has been approved by the Cyprus Securities and Exchange Commission (CySEC).
The focus on the European market is considered a major priority for the exchange as it continues to broaden its services globally. With this new regulatory license, the platform will be poised to offer compliant derivatives products to advanced cryptocurrency traders in selected EU markets. There are plans to fulfill additional requirements in the following months to roll out these products locally, demonstrating a commitment to meeting the demand for secure crypto derivatives trading.
Officials have remarked that this acquisition illustrates confidence in the European market and emphasizes the intention to create a trusted, regulated space for sophisticated traders and investors. This reflects a strategic move aimed at satisfying the growing appetite for regulated trading in cryptocurrencies.
The expansion into Europe aligns with the company’s broader growth strategy and commitment to providing various advanced trading services. The introduction of derivatives products will grant traders access to a diverse array of assets, allowing them to use different collateral currencies to support their market positions.
Furthermore, the exchange has been steadily increasing its offerings for institutional investors. A notable past purchase includes the acquisition of a UK-based regulated platform for crypto futures, which significantly expanded its operations within the UK.
In a separate initiative to attract clients from a rival platform, the exchange is offering fee credits to users who have received payouts from FTX. Eligible clients can trade up to $50,000 in cryptocurrencies without incurring trading fees, an incentive designed to lessen the financial burden of converting US dollar payouts into digital assets. Depending on the amounts received, qualifying clients can earn trading fee credits that will be automatically applied on the exchange’s trading platform upon distribution.
Overall, the pursuit of a MiFID license represents not just regulatory compliance but a strategic enhancement of the exchanges’ capabilities to cater to a sophisticated trading audience in Europe. This commitment to providing advanced trading instruments and ensuring a secure trading environment reflects a revised focus on user experience and trust in the volatile world of cryptocurrency trading.