UK’s Ban on Crypto Derivatives Goes Into Effect Today
The U.K. financial regulator Financial Conduct Authority (FCA) ban on the sale of derivatives and exchange-traded notes (ETNs) passed in October went into effect Wednesday.
- The FCA has said it considers the products to be ill-suited for retail consumers due to the potential harm they pose.
- The new regulation is being criticized by some in the crypto sector who argue the ban is a setback, and retail investors should have access to the same opportunities as institutions.
- The banning of cryptocurrency derivatives will drive retail users to unregulated platforms like Deribit and BitMEX who will offer even less protection than the regulated players, argued Dermot O’Riordan, partner of Eden Block, a European venture capital firm focused on blockchain technology.
- U.K.-based investment firm Hargreaves Lansdown took action ahead of the deadline and removed products such as the XBT bitcoin tracker from its platform.
- “Investors are no longer be able to buy these products through HL, but they can continue to hold investments that they already own, and can sell them when they wish to do so,” said Danny Cox, head of external relations at Hargreaves Lansdown.
https://www.coindesk.com/uks-ban-on-crypto-derivatives-goes-into-effect-today
