FCA-Regulated Digital Asset Derivatives Exchange GFO-X Launches in London

GFO-X has launched the first FCA-regulated crypto derivatives trading platform in the U.K., marking a significant milestone for the digital assets market in this region.

This new platform completed its inaugural trade on Tuesday, involving a transaction between financial firms Virtu Financial and IMC, with clearing services provided by DigitalAssetClear, as announced by GFO-X.

DigitalAssetClear, established by LCH, a subsidiary of the London Stock Exchange Group, offers services for cash-settled options and futures contracts based on bitcoin indexes.

Key financial institutions, including ABN AMRO, Nomura, and Standard Chartered, are backing GFO-X by facilitating transaction clearing on the platform.

In March 2024, the U.K.’s FCA lifted a ban that had been in place since 2020 on crypto derivatives for institutional investors. Shortly after, the London Stock Exchange indicated its willingness to accept applications for cryptocurrency exchange-traded notes (ETNs).

The launch of GFO-X highlights the ongoing evolution of a regulated crypto trading environment in the U.K. Internationally, the market for crypto derivatives is expanding as well, exemplified by Galaxy obtaining U.K. licensing to broaden its derivatives offerings last month, and Coinbase’s acquisition of Deribit for $2.9 billion earlier this month.