Flow Traders, a Dutch NV, Europe’s largest platform for trading exchange-traded funds (ETFs), began working actively on the cryptocurrency market, despite calls by the local financial regulator for investors and companies to ignore the industry.
The company has made the corresponding statement last week and became the first such firm in the world involved in the cryptocurrency industry. This happened despite the fact that the regulatory body supervising the financial sector in the Netherlands — the authority financial markets (AMF), has expressed his negative attitude to the cryptocurrency market. Nienke Torensma (Nienke Torensma), the representative of the Department, recently issued a statement which calls for investors to avoid investing in cryptocurrency and ICO. The statement stressed that they are «prone to abuse» and that the regulator «does not consider cryptocurrencies as an asset class». The document says:
«We do not approve transactions in crypto-currencies from both consumers and licensed companies. Due to its novelty and anonymity, potentially offering cryptocurrencies, they are very vulnerable to abuse. Given the inability of digital currencies to act as a currency, we do not consider them as an asset class».
Despite this open hostility on the part of the regulator, as long as Flow Traders, or any similar company traded cryptocurrency in the form of regulated securities to the official stock exchange, this is completely legal and therefore is unlikely to be discontinued in the near future. Dennis Dijkstra (Dijkstra Dennis), General Director of Flow Traders VN, expressed the company’s expectations in connection with access to the cryptocurrency market:
«People underestimate the cryptocurrency. It is a big market and it should begin to regulate as soon as possible. Market participants are far more professional than people think.»
The Swedish Issuer of the ETN XBT Provider recently confirmed that over the last few months trading of the securities on Flow Traders «has increased dramatically». The potential impact of those news on the market is twofold. First, the release of another traditional financial companies on the cryptocurrency market, indicates its prospects.
The opportunity to trade cryptocurrencies like regular securities on regulated exchanges, will likely increase their appeal to investors, who retreated due to the lack of experience in cryptocurrency trading. The decision Flow Traders VN has become one of the latest strategic steps that create the market for institutional capital.
In may it was reported that the Bank Goldman Sachs announced
on the use of private capital for trading futures on bitcoin in the name and on behalf of its clients. Last month it became known that Blockchain.com launches
a platform for institutional investors. A few days before the company Circle said that the interest of institutional investors in the cryptocurrency increased by 30%.