With the global cryptocurrency market capitalization getting closer to $2 trillion by the hour, cryptocurrency companies are looking to capitalize on the uptrend. Three major crypto exchanges – Banxa, OKX, and EDX – have all recently made moves to expand their operations abroad.
Banxa secured a key registration with the UK’s Financial Conduct Authority, something most cryptoasset businesses fail to achieve. OKX, on the other hand, has launched in Argentina as part of its Latin American growth strategy. Meanwhile, EDX Markets has solidified its plans to expand into the Singapore market this year.
TLDR
- Banxa has registered with the UK’s Financial Conduct Authority (FCA), making it the first crypto company to do so in 2023
- OKX has officially launched in Argentina as part of its expansion into Latin America.
- EDX Markets, backed by Fidelity and Schwab, plans to expand into the Singapore crypto market this year.
- Cryptocurrency companies like exchanges are rapidly expanding internationally to capitalize on the current crypto market uptrend and growing adoption.
- Regulatory approval remains a major hurdle for crypto companies expanding overseas.
Banxa Reaches a Major Milestone
Banxa, one of the most popular cryptocurrency on and off ramps, has secured a registration with the UK’s Financial Conduct Authority (FCA). The addition to the registry allows Banxa to operate as a cryptoasset business in the country, benefiting partners like Binance, KuCoin, and OKX.
Banxa has now become the first to register with the FCA this year, a process that has an approval rate of only 7%. Over the past year, only other four companies had secured a registration with the FCA, including Paypal and Bitstamp.
By offering its on and off-ramp services to some of the biggest exchanges and cryptocurrency platforms in the world, Banxa has become a powerhouse of the crypto industry. This notoriety, however, comes with increasing regulatory oversight and competition.
Banxa UK Managing Director Brinda Paul, the company’s former Director/Head of Compliance, spearheaded the company’s efforts. They expressed their belief that the FCA’s “high standards” would help the company drive adoption in the UK.
OKX Bets on Latin America
Cryptocurrency exchange OKX has officially launched in Argentina. The launch brings OKX’s trading services and web3 wallet to what it considers “a crucial launch pad” for its regional expansion. Argentinians will now be able to access a localized platform that lacks none of OKX’s features and services, according to OKX President Hong Fang.
Fang referred to Argentina as “one of the top crypto markets in Latin America” while expressing his excitement about the expansion. They also expressed the company’s commitment to continue its expansion in the region, stating “We’re just getting started!”.
Over the past decades, Argentinians have gotten used to keeping their savings in U.S. dollars as distrust in the local currency is commonplace. However, the former governments placed harsh restrictions on how many dollars can be acquired every month and who has access to them. As such, stablecoins and cryptocurrencies have emerged as the most popular alternative.
Cryptocurrency platforms have seen an opportunity in the soaring inflation, harsh economic measures, and a growing USD black market, as crypto offers a lifeline to millions of Argentinians. As the fourth-largest centralized exchange by trading volume, OKX’s launch was well received by Argentinian crypto users.
EDX Enters the Singapore Crypto Market
EDX Markets, a cryptocurrency exchange backed by Fidelity and Schwab, will expand its operations to the Singapore market. The company had already shared its plans to expand into Asia, but CEO Jamil Nazarali has now confirmed the move will take place this year.
Nazarali told DL News the company’s decision was mostly due to the inability to offer a comprehensive list of tokens due to regulatory uncertainty in the United States. The exchange seeks to offer spot and perpetual futures, something that the company “can’t do in the US”.
In addition to Singapore’s “strong regulatory framework” being one of the main reasons to choose the country, Nazarali also cited its reputation as a “global financial capital” and its big “supply of talent”. While full approval by Singapore’s regulators could take as much as 24 months, EDX aims to establish its presence in the country this year.
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