FTX to enter UK spot crypto market after regulator’s approval

The crypto exchange FTX has begun talks with UK regulators as part of plans to expand into the European market. In an interview with The Block, Patrik Grun, head of FTX Europe, said.

According to him, the company is taking a ‘relatively cautious approach’ in consultations with the Financial Conduct Authority (FCA) and cannot name any timelines for launching services in the country.

“We aim to launch spot trading in the United Kingdom as soon as possible, but it’s quite challenging. First, we want to discuss this with the FCA because of its relatively wary attitude toward cryptocurrencies,” Grun explained.

In January, a ban on crypto derivatives, which form the exchange’s main offering, came into force in the country, so the platform pivoted to the spot market, he added.

FTX created a European subsidiary in March 2022. The group’s headquarters are in Switzerland, with a regional presence in Cyprus, where the entity obtained a license from the financial regulator.

Grun acknowledged that the FTX brand is ‘not really known’ to European investors. The company plans a marketing campaign. It will include paid social media advertising, funding of music festivals and sporting events, following the strategy in the United States, he noted.

Grun described the FCA’s crypto-industry regulatory regime as ‘balanced’, despite the fact that the requirements proved to be too burdensome for dozens of companies.

“I know many crypto firms complain that ‘there’s too much compliance’, but they simply aren’t used to it,” commented the head of FTX Europe.

The unit will also conduct regulated activity in Dubai — in March 2022 the exchange received a license in the emirate.