The Financial Conduct Authority (FCA) has begun consultations on a total ban on cryptocurrency derivatives for retail investors. This is reported in the official release of the department.
In particular, we are talking about banning the “sale, promotion or distribution” of CFDs, stock notes, options and futures. FCA indicates that cryptocurrency assets are “unregulated” and also do not have a “sound basis for valuation.”
The regulator also notes the extreme volatility of the cryptographic market, the prevalence of manipulation and financial crimes. Based on this, the FCA does not see an “obvious investment need” for cryptocurrency derivatives.
Moreover, the agency calculated that the potential benefit for retail consumers from banning these products would be from £ 75 million to £ 234.3 million per year.
We note that the regulator earlier imposed restrictions on the offer of CFD and similar instruments to retail investors. Now the maximum leverage for cryptocurrency CFDs can be 2: 1.
It is expected that the official "Guide to CryptoActives" from FCA will be published before the end of the summer.
Recall that a possible ban on the sale of cryptocurrency derivatives to retail investors was confirmed by FCA back in November 2018 .
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