Although the Dutch Financial Markets Authority issued a warning to urge consumers to stay away from cryptocurrency transactions, Flow Traders NV, Europe's largest fund exchange, still chooses to enter the encryption market.
Headquartered in Amsterdam, Flow Traders NV focuses on exchange-traded bonds based on Bitcoin and Ethereum. According to data provided by the Swedish exchange bond issuer XBT Provider, the number of cryptocurrency bonds traded by Flow Traders has increased dramatically over the past few months.
This may be significant for the future of crypto-investment institutions, Bloomberg reported that Flow Traders is the first company in the world to publicly recognize transaction encryption funds on regulated exchanges. This shows that it may have confidence in the future of the encryption market.
Allowing institutional investors to trade crypto funds in a convenient and direct manner, such as trading traditional currency, may have a positive impact on the popularity of digital asset trading.
When talking about the potential growth of the encryption market, Dennis Dijkstra, co-CEO of Flow Traders NV, told Bloomberg:
“People underestimate the cryptocurrency. It is a big market and will soon be regulated. Market participants are more professional than people think. Institutional investors are very interested in cryptocurrencies, we know this because we received the request.”
The Dutch Financial Markets Authority has been firmly opposed to cryptocurrencies and issued a statement that cryptocurrencies are not classified as assets and are subject to abuse. Although the Financial Markets Authority objected, it did not have a practical legal basis to prohibit Flow Traders and any other regulated companies from trading crypto funds, so the traditional investors' incentives for encryption are still increasing.
CCN reported in March that Coinbase was awarded a UK e-money license and a Barclays bank account. According to reports, a month later, Goldman Sachs is establishing a cryptocurrency trading channel. The volume of transactions in the traditional market is disappointing, and with the dynamism of the encryption market, more institutional investors are preparing to dominate the encryption field.
Like many other regulators around the world, the Dutch Financial Markets Authority believes that cryptocurrencies have the risk of helping criminals and financing terrorism. Because cryptocurrencies are easy to cross-border, international agency G20 calls for a clear set of global anti-money laundering and KYC principles to replace the different standards used by regulators such as the US Securities and Exchange Commission and the Japanese FSA.