The UK Bans Crypto Derivatives
The crypto industry reacts to a big move from the United Kingdom's Financial Conduct Authority, which banned crypto derivatives.
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....
Two of the world’s ten most populous countries have or are considering crypto bans: Here’s what it means.
The combined forces of passionate communities with potent tools, and the deepening involvement of institutions, make successful bans less likely.
Crypto derivatives are now among the most common financial products on any cryptocurrency exchange or trading platform, thanks to increased interest among the trading community. Trading crypto derivatives has its own advantages as it allows users to mitigate volatility-associated risks and hedge against potential losses. There are various derivatives products that include Swaps, Futures, Forwards, […]
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.