IG Group Expands into Cryptocurrency Trading
IG Group, a prominent trading and financial services entity listed in the UK, is set to broaden its presence in the cryptocurrency market by launching direct trading services for retail investors. This initiative allows IG clients to trade a comprehensive selection of 31 cryptocurrencies, including Bitcoin, Ether, and XRP, along with a mix of altcoins and memecoins, such as Bonk. This was announced on June 2.
From CFDs to Spot Trading
Previously, IG provided access to cryptocurrencies through contracts for difference (CFDs), but this marks a significant shift to straight spot trading within the sector.
Collaboration and Customer Experience
The expansion of IG’s cryptocurrency services comes on the heels of increasing adoption of digital assets in the UK, alongside governmental efforts to establish a regulatory framework for the crypto industry. The launch includes a collaboration with Uphold, a regulated crypto asset firm based in the United States. Uphold will manage customer transactions and deliver pricing data via its integrated infrastructure within IG’s platforms, including the IG Invest application.
This integration facilitates a seamless experience, allowing users to move between their crypto and other investment accounts, such as those for stock trading.
Industry Impact
Michael Healy, IG’s UK managing director, heralded this development as a pivotal moment for both the company and the UK’s cryptocurrency landscape, noting that retail investors can now engage with digital assets in a trustworthy environment.
Previously, IG Group only allowed institutional clients to trade crypto CFDs, which differ from spot trading as they enable speculating on market prices without actual ownership of the assets. In early 2021, IG had briefly suspended its retail cryptocurrency services following a temporary ban from the UK’s Financial Conduct Authority (FCA) on crypto derivatives trading.
Market Growth and Regulatory Developments
As IG re-enters the retail crypto space, the broader UK crypto industry is experiencing significant growth. Recent statistics indicate an uptick in the number of new cryptocurrency owners, surpassing trends observed across Europe. This momentum coincides with the FCA’s recent initiatives, including a public consultation launched on May 28 to establish new regulations for stablecoin issuers and crypto custody providers, as well as a draft regulation to safeguard investors against potential risks associated with cryptocurrencies.
Given these advancements and regulatory discussions, the timing of IG’s launch seems to align perfectly with the growing demand and evolving standards for cryptocurrency operations in the UK.
