Galaxy Digital Bags UK License for Derivatives Trading Expansion

Galaxy Digital Capital Management LP’s United Kingdom subsidiary has received approval from the Financial Conduct Authority (FCA) to execute derivatives trading in the Country. This development marks another milestone in the organization’s efforts to expand its presence in the country and strengthen its role in digital asset financial services.

FCA Approves Galaxy Digital’s Expansion

It is important to note that Galaxy Digital UK’s approval from the FCA allows it to conduct derivatives trading legally under the country’s regulatory framework. 

Furthermore, the firm is now listed on the FCA’s investment firms register, specifically for companies permitted to perform MiFID investment services in the country.

Notably, Galaxy Digital joined the FCA’s crypto register in 2021, gaining recognition for its operations in the digital asset space. Many experts believe that this new license will allow the firm to broaden its financial services offerings in the UK market. 

Others asserted that the move is part of a larger strategy to bridge the gap between conventional financial systems and digital assets.

Investment Banking and Asset Management Plans

According to recent reports, the firm’s investment traditional financial institutions division will use this FCA authorization to provide capital raising and advisory services in addition to derivatives trading. 

In addition, Galaxy Digital UK subsidiary also intends to support its asset management operations by managing fund distribution activities.

Leon Marshall, CEO of Galaxy Europe and Global Head of Sales, explained the entity’s importance to the UK market.

Per the update, he pointed out London’s status as a global financial hub, adding that the newly acquired license would be instrumental in helping the company expand its operations in the region.

Crypto Firms Increasing Presence in the UK

Since the start of the year, the UK has become an attractive destination for cryptocurrency and digital asset companies looking to expand their market presence.

For example, several major firms, including Coinbase and Bitpanda, have recently entered the market. Additionally, BlackRock was recently added to the FCA’s crypto register, further signaling the region’s growing interest.

Also, Kraken, a global cryptocurrency exchange, received authorization from the UK Financial Conduct Authority (FCA) to operate as an Electronic Money Institution (EMI). With this latest approval, Galaxy Digital UK is positioned to strengthen its foothold in the UK’s evolving financial landscape.

Meanwhile, the Office of the New York Attorney General (OAG) recently fined Galaxy Digital a whopping $200 million for manipulating the price of Luna, a cryptocurrency that crashed in 2022.

This came after an investigation found that Galaxy Digital secretly sold its Luna holdings while publicly promoting the token.