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Key Takeaways:
Exclusive Market Position: With the Dutch licence, One Trading becomes the only platform in the European Union to offer perpetual futures trading. Additionally, it will be the first in Europe, including the United Kingdom, to provide cash-settled perpetual. This positions One Trading as a unique player in the market, offering innovative trading solutions not available elsewhere in the region.
Continuous Real-Time Trading: One Trading leverages distributed ledger technology to enable derivatives trades around the clock, in real-time, without needing external clearing. This technological advantage ensures seamless and efficient trading for its users, enhancing the overall trading experience.
Pioneering Collateral Use: One Trading is the first regulated European platform to permit using crypto assets as collateral for trading regulated financial instruments. This groundbreaking approach reflects the growing integration of digital assets into traditional financial systems and offers traders more flexibility and opportunities.
Dutch financial authorities recently awarded One Trading a licence for a significant development in the European cryptocurrency market.
Overview
The Netherlands-based digital asset exchange One Trading revealed that it is set to become the exclusive provider of perpetual futures trading within the European Union (EU) and the pioneer of cash-settled perpetuals across Europe, including the United Kingdom (UK). Additionally, it will be the first regulated derivatives exchange in Europe to be accessible to retail clients. CEO of One Trading, Joshua Barraclough, mentioned that anchoring trading means bringing it under local regulation. Barraclough said, “The company’s long-term vision is to enable all customer types to go long or short on any asset, use any asset as collateral, settle everything instantly, and perpetually roll contracts.”
He added, “With this licence, we are well positioned to introduce newly regulated products and offer institutional-grade solutions to all customer types, starting with BTC and ETH products where no onshore EU regulated venue currently exists.” Leveraging distributed ledger technology, One Trading facilitates derivatives transactions continuously in real-time without needing external clearing. It was also the first platform in the EU to allow the use of crypto assets as collateral for trading regulated financial instruments. This milestone represents a pivotal moment for the company and Europe’s broader crypto trading ecosystem. The newly acquired licence enables One Trading to offer crypto futures trading services within the EU, further solidifying its position as a key player in the region’s financial landscape.
The Significance of the Licence
The Dutch licence granted to One Trading is not merely a regulatory formality but a substantial endorsement of the company’s compliance with stringent financial standards and practices. The Netherlands has long been recognised for its rigorous regulatory framework to ensure market integrity and protect investors. By securing this licence, One Trading demonstrates its commitment to upholding these high standards and contributing to a more secure trading environment for its clients.
This development is particularly noteworthy as it allows One Trading to operate within the EU’s regulatory framework. Firms must expand their services across multiple European jurisdictions. The licence will enable One Trading to offer crypto futures trading onshore, providing European investors with more opportunities to engage in sophisticated trading strategies using digital assets. As the crypto market matures, regulatory approvals like this play a crucial role in fostering trust and legitimacy within the industry.
Enhancing Market Access for EU Investors
With the Dutch licence, One Trading is set to enhance its service offerings for European investors. Crypto futures are derivative contracts that allow traders to theorise about the future price of cryptocurrencies, providing opportunities for both hedging and profit-making. The ability to trade these futures onshore within the EU means that investors can now access these financial products without going through offshore entities, which often come with higher risks and regulatory uncertainties.
The introduction of onshore EU crypto futures trading is expected to impact the market positively:
- Market liquidity will likely increase as more investors gain access to these instruments.
- It will contribute to a more transparent and regulated trading environment, as transactions will be subject to EU regulations and oversight. This can lead to greater investor confidence and participation in the crypto market.
- The move aligns with the broader European Union strategy to create a cohesive and well-regulated digital finance ecosystem.
The EU has been working towards establishing a comprehensive regulatory framework for digital assets, and One Trading’s licensing is a step in this direction. By operating under the Dutch regulatory umbrella, One Trading is complying with local laws and contributing to the EU’s broader regulatory goals. Previously known as Bitpanda Pro, One Trading was established by the Australian company Bitpanda in 2019. In June 2023, it was spun off following a Series A funding round, during which Valar Ventures led an investment of 30 million euros ($32.5 million). Valar Ventures, co-founded by PayPal co-founder Peter Thiel, supported Bitpanda through three funding rounds. Besides Bitpanda, Thiel-backed crypto ventures include the Vauld exchange, BitDAO (now known as Mantle), and Praxis, which aims to create a crypto-driven city in the Mediterranean. Praxis currently boasts 2,228 residents and 146 registered businesses.
Future Prospects and Market Implications
Looking ahead, the Dutch licence positions One Trading to capitalise on the growing interest in crypto trading within the EU. As digital assets continue to gain traction among institutional and retail investors, the demand for regulated trading solutions is expected to rise. One Trading’s ability to offer onshore crypto futures will likely attract diverse clients seeking reliable and compliant trading options. The licensing also underscores a broader trend in the financial industry: the increasing integration of digital assets into traditional financial systems.
As more regulatory frameworks emerge, companies like One Trading will play a critical role in bridging the gap between conventional finance and the burgeoning world of cryptocurrencies. This integration could lead to innovations and opportunities in the financial sector, benefiting investors and market participants. Furthermore, One Trading’s success in obtaining the Dutch licence may serve as a benchmark for other crypto firms looking to enter the European market. It highlights the importance of regulatory compliance and the potential rewards of operating within a well-regulated environment. As the European regulatory landscape evolves, One Trading’s achievements may inspire similar initiatives across the continent.
One Trading’s acquisition of the Dutch licence marks a significant advancement in the European cryptocurrency market. By enabling onshore EU crypto futures trading, the company is set to enhance market access, increase liquidity, and contribute to a more regulated and transparent trading environment. As the digital finance landscape evolves, One Trading’s strategic move could have far-reaching implications for the future of cryptocurrency trading in Europe.