The company One Trading shared exciting news this Tuesday, July 29. The cryptocurrency exchange revealed in a post on its blog that it has been granted an Organised Trading Facility (OTF) license by the Dutch financial market authority.
According to the announcement, One Trading can now officially claim the status of a regulated company under MiFID II (Markets in Financial Instruments Directive). This means that the platform is “the only venue for perpetual futures trading in the EU and the first cash-settled perpetuals platform in the region.”
If you are not familiar with One Trading’s services or the OTF licenses and are curious about the possible effects the company’s new status may have on European investors, keep reading.
What is One Trading
One Trading is a platform for cryptocurrency exchange headquartered in London, Amsterdam, and Milan. The company was founded by Joshua Barraclough in 2017 and initially linked to the Bitpanda Pro brand. Currently, the platform defines itself as dedicated to meeting the needs of European customers.
The exchange is known for its compliance with European cryptocurrency regulations and is often praised for its transparency for both retail and institutional investors.
Like the exchange Coinbase, this platform offers fast transactions, cryptocurrency wallet protection, two-factor authentication, and 24/7 customer support.
What Does an OTF License Imply?
An OTF license allows an exchange to operate as an organised trading facility for bonds, structured financial instruments, emission rights, and derivatives.
As a cryptocurrency exchange, One Trading’s license now authorizes the buying and selling of digital assets such as Bitcoin, Cardano, Apecoin, Avalanche, Dogecoin, and Litecoin.
The license was created in 2018 by MiFID II, a set of legislative reforms aimed at regulating the European financial market.
How the New Status Could Impact European Investors
The newly acquired OTF status of One Trading will allow the cryptocurrency exchange to operate as the first regulated facility to support the execution of trades with derivatives.
European investors may benefit from One Trading’s new status by executing intermediary and discretionary flows, discovering new sources of liquidity and trading opportunities.
European investors will benefit from greater transparency in trading costs and the strict record-keeping of financial transactions that compliance with OTF licenses requires. Given its significant popularity in Europe, customers of Coinbase are now eagerly awaiting the potential acquisition of an OTF license by the exchange in the near future.
Libertex
- Regulated broker by CySEC
- Crypto CFD trading with leverage
- 50k Demo account
Libertex
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.91% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
