UK’s FCA crypto derivatives ban may push retail investors to riskier grounds

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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UK crypto community reacts as FCA derivatives ban goes into effect

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,....

UK Bans Sale of Crypto Derivatives to Retail Investors, Says Move to Save $69...

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....

97% of People Consulted by UK Financial Regulator Opposed Crypto Derivatives Ban

The Financial Conduct Authority (FCA) ban on crypto derivatives sales to retail investors has set tongues wagging. It is no mystery. After a consultation process that closed Oct. 3, 2019, with 97% of participants opposed to the prohibition, the U.K. financial regulator still proceeded to issue the ban, completely disregarding the overwhelming public input. In its defence, the FCA claims to be protecting consumers and “enhancing the integrity” of the British financial system. But many within the U.K. crypto industry and elsewhere are unimpressed, perhaps with good reason. On....

Crypto Long & Short: A U.K. Ban on Crypto Derivatives Will Hurt, Not Protect ...

The FCA’s retail investor crypto derivatives ban is a misuse of regulatory authority, argues Noelle Acheson. What’s more, its main justification is one of crypto assets’ strongest features.

UK's FCA bans retail crypto derivatives after year-long consideration

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....