10/6/2020, 12:17 PM (Source: TeleTrader)
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Crypto-derivatives sale banned in UK

The sale of derivatives and exchange traded notes (ETNs) related to cryptoassets will be banned in the United Kingdom from January 6, 2021 because of the "harm" it can cause, the Financial Conduct Authority (FCA) announced on Tuesday. The ban is only linked to sales to retail customers, the watchdog added and said it will save retail customers £53 million.

The ban includes sale, marketing and distribution of crypto-derivatives and ETNs that reference "unregulated transferable cryptoassets" such as bitcoin, ether and ripple.

"Significant price volatility, combined with the inherent difficulties of valuing cryptoassets reliably, places retail consumers at a high risk of suffering losses from trading crypto-derivatives. We have evidence of this happening on a significant scale. The ban provides an appropriate level of protection," FCA's interim head of Strategy & Competition, Sheldon MIlls, said.

Baha Breaking the News (BBN) / VP