UK’s FCA crypto derivatives ban may push retail investors to riskier grounds
U.K.’s FCA banning retail investors from engaging with crypto derivatives takes away risk hedging opportunities. It has stated a variety of reasons for why the products cannot be “reliably valued” by retail consumers, such as financial crime, volatility and an inadequate understanding of crypto assets being the main ones. It was estimated that retail investors will save $53 million due to this ban. This is despite the FCA releasing a research stating that U.K. consumers have invested an estimated $2.6 million in crypto assets.Although the main intention of this ban is to protect retail....
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The ban placed by financial regulators in the United Kingdom on the sale of crypto derivatives to retail traders is now in force. On Wednesday, the decision by the United Kingdom's Financial Conduct Authority to ban crypto futures and exchange-traded notes finally went into effect.The FCA initially announced the ban back in October 2020 following a year-long consideration of the matter. At the time, the FCA argued that crypto derivatives were ill-suited to retail investors who were at risk of incurring significant losses.Commenting on the decision as the ban went into effect on Wednesday,....
With the rise of derivatives trading, how do protocols ensure that retail investors are not going in blind? BTCWith an increase in the number of retail investors dabbling in derivatives trading and investors hopping into decentralized exchanges (DEXs) due to regulations in the United States and China, there has been a rise in users utilizing derivatives DEXs, with Bitcoin (BTC) whales moving into derivatives and an increase in buying interest in derivative contracts.This has created a surge in the daily trading volume for derivatives protocols, allowing them to briefly take over....
The U.K.’s Financial Conduct Authority (FCA) has banned the sale of cryptocurrency derivatives products to retail investors in a move that it says will save the targeted customers £53 million ($68.9 million) in losses each year. The ban comes into effect on January 6, 2021. In a statement on October 6, the regulator declared that the sale, marketing, and distribution of any derivatives including contracts for difference, options, futures, and exchange-traded notes (ETNs) by any local or foreign company operating in the U.K. is banned. The Authority said derivatives based on....
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CoinShares' pleas last year went unheard as crypto futures and ETNs will be soon banned. In a landmark decision issued on Tuesday by the U.K.’s Financial Conduct Authority, companies in the country will no longer be able to offer cryptocurrency derivatives products such as futures, options and exchange-traded notes (ETNs) to retail customers.The decision comes almost exactly one year after the regulator first proposed banning these products. In a statement released by the FCA, the regulators claim that cryptocurrency derivatives are “ill-suited for retail consumers due to the harm they....