FCA Reportedly Considering Task Force Recommendation to Ban Crypto Derivatives

 

 

 

When the UK government’s cryptocurrency taskforce reported to the government in late October, one of its recommendations advised officials to consider a complete ban on crypto derivatives like CFDs, futures, and options. UK Financial Conduct Authority (FCA) Executive Director of Strategy and Competition Christopher Woolard has confirmed that regulators will consider such a ban, according to Finance Magnates.

Woolard’s comments came during a keynote speech at a London conference on Tuesday. He outlined the regulators’ plans for addressing the issue, noting that the agency would be providing crypto firms with some preliminary guidance about their activities before the end of 2018.

That consultation will help define which activities the FCA will govern. After that, the agency will examine the need to expand its reach to focus on activities that don’t fit within existing regulations.

His remarks about derivatives were clear: the FCA is in the process of consulting on a possible ban that would prevent crypto derivatives from being sold to retail clients. Woolard explained the regulators’ concerns:

“We’re concerned that retail consumers are being sold complex, volatile and often leveraged derivatives products based on exchange tokens with underlying market integrity issues.”

Finance Magnates noted that any attempt to ban CFDs would probably also target futures, options, and transferable securities.

 

 

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

Share This Post On

Submit a Comment

Your email address will not be published. Required fields are marked *

  Subscribe To Newsletter
Subscribe to Our Newsletter

Keep up to date with the latest from DCEBrief

* we hate spam and never share your details.
×