The FCA in the UK is to decide whether to ban crypto derivatives for retail investors or not. The UK government has come to the conclusion that it is time for the regulator to decide the fate of the crypto product.
According to press, on the 21st of October, the Economic Secretary to the Treasury, John Glen, has responded to several questions about the approach of the UK towards cryptocurrencies and crypto-assets, mentioning the UK FCA’s current consideration of the crypto derivatives ban. Mr. Glen emphasized that the FCA is operationally independent from the government and it is the only entity that needs to decide the fate of the crypto product.
The problem was that a report from Cryptoasset Taskforce has pointed that the FCA is actually bound to consult the public on whether it should ban CFDs and exchange-traded products in the UK.
Up until now, the FCA has received multiple complaints about the sale of crypto derivatives in the UK. Once these complaints were in, the FCA launched the consultation procedure. The major idea here was that non-pro traders were not able to assess the risks of the CFDs.
Right now, the FCA believes that retail investors should not invest in these risky products, as their value is very volatile and the CFDs are not properly regulated. The savings from this will be in the range of $267 million and $451 million.
Nevertheless, the FCA has concluded that major alt coins are actually exchange tokens and do not fall under the regulator’s scope of action.
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FCA to decide the fate of crypto derivatives in the UK was first posted on October 24, 2019 at 1:06 am.