Dutch Speed Trading Firm Enters Crypto Market Despite Regulator’s Warnings

Amsterdam-based velocity dealer Flow Traders NV has entered the cryptocurrency market regardless of the warnings of the Dutch Authority for the Financial Markets (AFM) to not purchase and promote digital currencies, Bloomberg reported July 5.

Europe’s largest dealer of exchange-traded funds Flow Traders NV is reportedly the primary agency to purchase and promote exchange-traded notes primarily based on Bitcoin (BTC) and Ethereum (ETH). According to Bloomberg, such publicly traded notes may broaden the enchantment of crypto by making it simpler and cheaper to speculate. Co-Chief Executive Officer of Flow Traders NV Dennis Dijkstra stated that cryptocurrencies are underestimated, including:

“It’s big, and it is to be regulated very soon. The market participants are much more professional than people think. Institutional investors are interested — we know they are because we get requests.”

The AFM didn’t share Flow Traders NV’s enthusiasm, however whereas the AFM could make suggestions and public warnings, there may be little they will do to ban any firm from buying and selling regulated securities on a regulated alternate. Nienke Torensma, a spokeswoman for the AFM, is quoted as stating:

“We discourage activities in cryptos both by consumers and professional license holders. By virtue of its newness and the anonymity it potentially offers, it is very prone to abuse. Given its inability to serve the promised purpose as a currency, we don’t regard it to be an asset class.”

As per Dijkstra, the corporate was hedging its trades of crypto notes with futures contracts managed by CME Group Inc. and Cboe Global Markets Inc. He claimed that the brand new method has “big spillover benefits” for Flow Traders NV’s growing foreign-exchange buying and selling enterprise.

According to Bloomberg, within the first quarter of 2018 Flow Traders NV traded €244 billion ($284 billion) of alternate traded funds (ETFs) globally, together with €143 billion ($167 billion) in Europe, making the corporate the biggest dealer of the securities within the area.

The AFM raised “doubts” towards cryptocurrency investments in the course of June by sending a letter to market individuals who wish to supply crypto funding alternatives. The regulator stated that associated “risks” meant that such firms may fall in need of any licensing obligations.

Conversely, in May the federal government released a report saying that cryptocurrencies current a low threat to monetary stability within the nation. The report predicts that crypto-related dangers will improve with extra participation from government monetary establishments and harassed the necessity for balanced monetary regulation.

Original article first appeared in https://cointelegraph.com/information/dutch-speed-trading-firm-enters-crypto-market-despite-regulator-s-warnings

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