UK’s Financial Regulatory Approves Crypto Liquidity Firm

London Based Crypto Liquidity firm B2C2 OTC Ltd. has been approved by UK’s Financial Conduct Authority (FCA) according to the financial register record published on January 30.

B2C2 provides electronic over-the-counter (OTC) trading, which can now offer contracts for difference (CFDs) to eligible and professional clients.

Crypto CFDs allow traders to predict the future price change of specific cryptocurrencies, and in turn, provide an opportunity to make a profit in both rising and falling markets by going long or short.

The B2C2 posted on Twitter that the firm is delighted to receive FCA Authorisation.


According to B2C2 website, OTC’s CFD product allows exposure to Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), Litecoin (LTC), Ethereum Classic (ETC) and ZCash (ZEC), where clients can buy or sell in all significant fiat currencies.   

B2C2 clients include brokerages, FOREX, hedge funds, and CFD trading firms, and family offices. The firm also works with selected high net worth individuals who pass KYC checks.


Maxime Boonen, Founder and CEO of B2C2, stated that

“We are excited to have received authorization from the FCA to introduce a cryptocurrency CFD product. Eligible counterparties and professional clients can now gain derivative exposure to the cryptocurrency markets, benefiting from the competitive pricing and liquidity they’re accustomed to receiving from B2C2 while avoiding the risks associated with crypto custody.”

Earlier in December 2018, UK’s Financial Conduct Authority (FCA) took a tough stand on cryptocurrency based retail trading in contracts for difference (CFDs) and other crypto related derivatives.

Christopher Woolard, FCA Executive Director Of Strategy & Competition (in Dec 2018) had stated on CFDs, “We remain very concerned about the harm to retail consumers that’s being caused by the design and distribution of some complex derivative products.”

The B2C2 offers a unique feature, where the clients can have access to the post-trade settlement, which means the clients can buy or sell crypto on the company’s platform without depositing any assets. The feature is a significant distinction from other exchanges, where you first need to deposit the full value of cash or crypto before you are authorized to perform a transaction.

It’s indeed a positive sign for other crypto liquidity firms which are yet to obtain FCA approval. The financial regulator has been pushing to tighten oversight of the crypto space.

Recently, the FCA had set out proposed guidance as to how crypto assets should be regulated in the country. FCA is also aiming to guard against the perceived risks of the technology which has taken a more decisive stand on blockchain innovation, including allowing crypto startups into its regulatory sandbox.