By
Godfrey Benjamin
April 17th, 2024
Following the MLR license approval, Crypto Facilities has now joined a small group of firms that offer regulated options for crypto exposure to customers.
According to reports, crypto derivatives trading platform Crypto Facilities has secured an MLR (Money Laundering Regulations) license with the Financial Conduct Authority (FCA). This directly means that the Kraken-owned subsidiary has met lawful anti-money-laundering obligations, and can provide more financial instruments linked to digital currencies. As Crypto Facilities chief executive officer Gary Worrall put it, in a statement:
“It paves the way for us to enhance and expand our offering, ensuring clients have access to the various exposures that best fit their investment needs.”
In addition, Crypto Facilities getting the MLR license indicates that the subsidiary must abide by the same money laundering-related principles that FCA-regulated banks have to meet. Worrall also touched on this saying:
“The MLR registration effectively ticks all the right boxes for both current and prospective clients to continue trading crypto derivatives on the Crypto Facilities platform.”
As one of the few firms with the MLR license, Crypto Facilities will continue providing customers in the UK with access to derivatives trading on its platform. The Kraken subsidiary is also the first crypto firm to receive a UK MTF license as well.
Some other platforms also provide services similar in structure to Crypto facilities. However, some are based outside the UK, and therefore not registered with the FCA. Many opt for this because they find it easier to target British customers from overseas bases.
Other firms to receive MLR licenses are two Gemini entities, Archax, Digivault, Ziglu, and Mode.
Amid FCA License Approval, Crypto Facilities in a Nutshell
Founded in 2014, and acquired in 2019 by US-based crypto exchange Kraken, Crypto Facilities is cementing itself as a force in Europe’s crypto space. The firm received its Multilateral Trading Facility (MTF) license from the FCA in 2020. Afterwards, it became a regulated venue offering European investors access to crypto derivatives for the first time – after receiving its
Crypto Facilities, which was initially launched by Timo Schlaefer, an ex Goldman Sachs director, already has an impressive derivatives lineup. The platform offers derivatives trading options with Bitcoin, Ripple, Ethereum, and also Litecoin futures contracts. The major British exchange launched the Litecoin option back in June 2018. At the time, it was looking to open up LTC trading to more institutional investors.
In addition to being considered the world’s most diverse derivatives marketplace, Crypto Facilities also provides clients with special solutions. These include real-time risk management, regular trading, and also hedging solutions for all digital assets offered. Furthermore, the platform also partners with the CME Group, an American global markets company, and exchange based in Chicago.
Kraken
Crypto Facilities’ parent company Kraken, founded in 2011, is a San Francisco-based crypto exchange and bank. The company is the world’s largest global digital exchange by euro volume and liquidity. Kraken is currently available to customers residing in 48 US states and 176 countries. Furthermore, the platform has 72 digital currencies listed for trading.