The Financial Conduct Authority (FCA) is considering a possible ban on the retail trading of all derivative instruments that relate to exchange tokens such as Bitcoin. The UK’s financial regulator believes that crypto-based derivatives like CFDs, options and futures tend to be riskier than crypto assets, the Financial Times reports.
The FCA published this statement alongside the first report released by the Cryptoasset Taskforce, a target working group created earlier this spring by the FCA, HM Treasury and the Bank of England. The Taskforce was launched in order to study the potential vulnerabilities of the essentially unregulated crypto market, and also assess the benefits and risks of blockchain and digital assets.
When the study was finally released, it showed that among other issues, the FCA is pondering measures such as a complete ban on the sale of CFDs on cryptocurrencies and other crypto-based derivatives to retail investors.
“Given concerns identified around consumer protection and market integrity in these markets, the FCA will consult on a pro...
This article appeared first on Cryptovest