Uk Regulator Considers Cryptocurrency Derivatives Ban Because of to Industry ‘Integrity Issues’

The U.K.’s finance regulator, the Monetary Perform Authority (FCA), may ban cryptocurrency derivatives this kind of as futures as section of its “most in depth response” to the industry, economic investing information outlet Finance Magnates reported Nov. 20.

In a speech at a London convention Tuesday, FCA govt director of method and level of competition Christopher Woolard stated the organization would talk to on forbidding so-named cryptocurrency contracts-for-change (CFDs).

This, claims Finance Magnates, would “likely” also integrate “options, futures and transferable securities.” The publication quoted Woolard as stating:

“We’re concerned that retail individuals are being marketed elaborate, volatile and normally leveraged derivatives items dependent on trade tokens with fundamental sector integrity concerns.”

The U.K. has identified alone in a regulatory quandary about its slow reaction to the mature in acceptance of cryptocurrency and involved instruments, with different factions criticizing the FCA’s priorities and intentions as they have surfaced so far.

In Tuesday’s speech, Woolard was outlining the results of a dedicated “Taskforce” which started formulating suggestions in March. The strategy of a ban on crypto derivatives first surfaced in Oct, Cointelegraph reported.

The group experienced delineated cryptocurrencies into a few types, Woolard noted, constituting “exchange tokens” these as Bitcoin (BTC), “security tokens,” and “utility tokens.”

Relating to unauthorized use of tokens, Woolard also announced plans to just take on what he identified as “one of the most extensive responses globally to the use of cryptoassets for illicit pursuits.”

A modern study meanwhile confirmed that understanding, ownership, and recognition of Bitcoin between British shoppers has markedly improved.

Leave a Reply