Japanese financial services provider SBI Holdings recently announced that it will offer crypto derivatives as its new service modality. This time it’s about short-term crypto derivatives. They will operate with so-called contracts for difference or CFDs for its acronym in English.
The service will be launched specifically on the platform SBI FX TRADE and will include equivalents of Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP). Likewise, it was notified that they may be paired with currencies such as the United States dollar (USD) and the Japanese Yen (JPY).
It should be taken into consideration that this financial services provider belongs to the Holdings Group corporation. In it, more than 5,000 workers work and it is one of the main centers of finance in the Asian nation.
Crypto derivatives on the agenda of the giant SBI Holdings
The official announcement of the firm SBI Holdings, that it will offer crypto derivatives in the short term, was made public last Friday. In this sense, they explain that the three mentioned cryptocurrencies reflected, will be equated to the USD and JPY, which means that there will be 6 different types of CDF.
The magnitude of the figures for the orders available in the operations are one of the most prominent themes of the announcement. This is because, as for the JPY, operations from 15 yen up to 500 Bitcoins can be opened. This in relation to the JPY / BTC pairs.
On the other hand, SBI Holdings, assured that they have a mobile application, through which investors can access the system. Through it, you can enjoy the service 24/7.
In this way, the Japanese giant SBI Holdings will offer all the advantages to users so that they are aware of their investments in crypto derivatives. Another important feature is that there is a leverage service in which people can borrow from the platform.
Between suspicions and suspicious looks
Although SBI Holdings belongs to a conglomerate with a high presence in international finance, it is still under the scrutiny of regulators. It should be noted that controversy is an almost natural quality of finance.
In this regard, one of the most important regulators in the United Kingdom, the FCA or Financial Conduct Authority, has issued warnings. The entity assured that this type of services would be prohibited when it comes to retail merchants.
The reasons for the ban on crypto derivatives such as those to be offered by SBI Holdings were voiced last year by the FCA. He rated them as “Inappropriate financial products for retail investors”.
In the view of the FCA, retail investors are not in a position to “reliably” assess the value and risks of these services. Despite them, SBI Holdings assured that it would not limit itself in its provision of services, both to expert operators and to beginners.
Data to take into consideration
- SBI Holdings will offer the ability to match the crypto derivatives BTC, ETC and XRP with USD and JPY.
- With these equipments, the platform opens a total of 6 types of CDF.
- The application that makes the platform available offers the option of leverage so that users can request loans.
- CDFs with short-term contracts, which pay the difference in price between the opening and closing operations.
- The FCA considers prohibiting operations with crypto derivatives for retail investors, considering them non-transparent and risky.
The information in this content has been extracted from reliable sources that are detailed below:
1- Professional content management by the authors of CriptoTendencia.
2- External sources: Sbigroup.co.io, fca.org.uk, and CoinDesk.com.