Trading 212 Gains Crypto License in Cyprus

Trading 212, a popular brand offering cash equities and contracts for differences (CFDs), has secured a crypto asset service provider (CASP) license from the regulator in Cyprus.

A License to Offer Crypto in Europe

According to the registry of the Cyprus Securities and Exchange Commission (CySEC), the CASP license was awarded to a local entity named Trading 212 Crypto Ltd on 20 May 2024. The newly formed entity is separate from Trading 212 Markets Ltd, which holds a Cyprus Investment Firm (CIF) license.

Under the license, the Trading 212 brand can offer exchanges between crypto assets and fiat currencies, along with custodial services for cryptocurrencies. However, it is unclear how the company will use the authorisation. Trading 212 is yet to announce anything about its plans around cryptocurrencies.

A Major Retail Trading Brand

Trading 212, established in Bulgaria in 2004 as Avus Capital and incorporated in the UK in 2013, primarily focuses on the UK and the European Union. It generates revenue from three entities: one in the UK and two in Cyprus and Bulgaria, respectively. Now, it has another Cypriot entity under which it can offer crypto services. It closed down a German entity in 2022 and migrated the clients' funds to the UK and the Cypriot entity.

The UK unit of the brokerage reported a 3 percent revenue decline to £95.3 million in 2023, while the pre-tax profits dropped by 28 percent to £38.6 million. The European revenue-generating entities are yet to publish their figures for 2023; however, the non-UK entities generated annual revenue of £16.2 million in 2022, dropping from £44 million in the previous year.

Although Trading 212's offerings have long remained CFDs, the brand is now shifting its focus towards stockbroking.

Meanwhile, the brokerage brand has been diversifying its other offerings. Earlier this year, it launched multi-currency payment cards for its customers in the United Kingdom, with plans to expand to Europe as well.