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FCA Approves Portofino Technologies to Offer Crypto Services in the UK

financemagnates.com 04 March 2024 13:33, UTC

The Financial Conduct Authority (FCA) has registered the Switzerland-based market-making liquidity provider Portofino Technologies, enabling the company to serve institutional crypto clients in the UK.

According to the press release, this step allows the firm to engage with major banks, trading platforms, brokers, and institutional investors. Additionally, the certification allows the firm to provide over-the-counter trading services in the UK and Switzerland.

Institutional Access and Compliance

Alex Casimo, the Co-Founder and Chief Operating Officer at Portofino Technologies, mentioned: "Receiving the FCA's approval to operate as a crypto asset trading firm in the UK is a significant milestone for Portofino Technologies, which will allow us to expand our institutional client base."

"After having successfully built our product for on-exchange trading, Portofino sees the growth of its client franchise as a significant profit driver for the company in the coming years."

The expansion of OTC business by Portofino Technologies signals a growth trajectory in its crypto offerings. The company aims to expand its liquidity services globally by aligning with the FCA regulations.

Established in 2021, Portofino Technologies operates as a market-making liquidity provider. The firm offers a trading infrastructure targeting the digital sector. By 2023, Portofino had reportedly secured $50 million in funding from investors such as Coatue Management, Valar Ventures, and Global Founders Capital.

UK's Crypto Regulations

Recently, the FCA issued the payments platform Volt an Electronic Money Institution license. Under this approval, Volt's cash management product, Connect, will issue virtual accounts to merchants, facilitating real-time account-to-account payments from customers, Finance Magnates reported.

This enhancement provides merchants with improved visibility and control throughout the payment process, addressing common challenges faced by businesses regarding payment processing. Additionally, the EMI license enables Volt to offer standalone virtual accounts.

Recently, the UK government unveiled its plans to introduce comprehensive regulations for the cryptocurrency industry within the next six months. These rules target stablecoins and staking services.

Stablecoins are cryptocurrencies pegged to assets like the US dollar or pound sterling, aiming to minimize volatility and provide stability within the crypto market.

financemagnates.com