Weekly Recap: IG to Offer Crypto Trading, Why South America Leads in Prop Trading Success

IG Group to offer crypto trading

Starting off this week's new recap, IG Group is expanding its services around digital assets as it prepares to launch spot cryptocurrency trading for retail investors. The new services will extend the platform’s current offering of crypto contracts for differences.

The London-listed platform will offer spot trading in more than 30 cryptocurrencies, including Bitcoin, Ether, XRP, and popular meme tokens. To facilitate crypto trading, the company has partnered with Uphold, which is regulated in both the US and the UK.

At the same time, the crypto exchange Kraken launched a new full-service brokerage solution targeting hedge funds, asset managers, corporates, and other large-scale market participants.

Revolut eyes crypto derivatives market

A recent hiring post may have just unveiled Revolut’s next big move in the crypto space: a full-scale expansion into derivatives trading. The fintech firm is preparing to build this business from scratch, even as it navigates regulatory uncertainty in its home market.

Dubbed Kraken Prime, the new platform reportedly consolidates trading, custody, and asset financing into one streamlined interface. Backed by 24/7 client service, it aims to provide execution quality that is familiar to traditional finance players.

Revolut's move came as Hong Kong’s financial markets regulator plans to allow crypto derivatives trading for professional investors, aiming to expand product offerings in the asset class and strengthen the city’s global competitiveness.

How genuine are prop firms' “total payouts” claims?

In the prop trading space, we examined whether a prop trading firm's payout claims can be trusted or, even further, tracked. Your guess is as good as mine: there is no way.

Prop trading firms are not financial services providers, meaning they do not come under heavy regulatory scrutiny like forex and contracts for differences (CFDs) brokers.

They are not required to report any data, unlike CFD brokers, who must report the percentage of retail clients who lose funds, among other data points.

Besides the payout claims, funding for prop trading clients remains a challenge. A recent study found that only one in five prop firm clients actually receive funding. The findings showed that Colombia leads all countries in participation, followed by the United States and Brazil.

CMC Markets' annual profit soars 33%

CMC Markets closed the fiscal year 2025, which ended on 31 March, with a net operating income of £340.1 million, a modest 2% annual increase, while pre-tax profits jumped by 33% to £84.5 million.

The financial results released show that the broker’s Australian stockbroking unit achieved a record net operating income of AU$106.3 million, up from AU$85.1 million in the previous year, driven by “double-digit growth in active clients and new accounts.”

Russia forces forex brokers to end Telegram support

Regulated forex brokers in Russia have ceased offering customer support via the messaging platform Telegram, following the enforcement of a new federal law at the beginning of June.

The law prohibits financial institutions and government agencies from communicating using any foreign messaging platform. Two out of three locally regulated forex brokers in Russia have reportedly confirmed the end of their Telegram-based customer support.

Forex firms accused of laundering drug money in Cyprus

Meanwhile, in Cyprus, the forex industry is under fire. Paphos Mayor Phedonas Phedonos has made strong allegations that Cyprus has become part of an international money laundering network involving Latin American drug cartels.

Speaking on social media, the mayor claimed that some Forex firms based in Cyprus are being used to launder drug money through complex shell company networks in Latin America.

ESMA is curious about retail investors' habits

In the regulatory front, ESMA’s call for feedback on how retail investors engage with investment services and whether regulatory or non-regulatory barriers may discourage participation in capital markets is unlikely to set the pulses racing.

After all, this is just the latest in a long line of similar consultations, and some see it as an admission that excessive regulation is one of the main factors holding back retail investment in Europe.

Trump–Musk rift

Finally, in a dramatic twist in U.S. politics, the Trump-Musk camaraderie imploded this week, replaced by a war of words and bruised egos. It all started when Tesla’s CEO turned on Trump’s prized mega bill, calling it pork-filled and fiscally reckless.

The US President admitted disappointment in Musk’s escalating attacks on his signature tax-and-spending plan. Earlier, Elon Musk left DOGE as Trump's budget slashed support for electric vehicles.