The FCA’s ban on the sale of crypto-derivatives to retail consumers will come into force on 6 January 2021
Last week, the UK’s Financial Conduct Authority (FCA) issued a ban on the sale of crypto-derivatives and exchange traded notes (ETNs), including products such as CFDs, options and futures, for retail investors.
Striving to protect the consumer market, the new ban which comes into effect on 6 January 2021, will stop the sale, marketing and distribution of such products and help to reduce trading losses.
Our CEO and Founder, Dmitry Tokarev, shared his views on the news:
“Making sure that cryptoassets are fairly and effectively regulated is one of the most important elements in helping the industry mature. Consumer protection is vital especially given the wide range of investment products available to the retail market. We would, however, caution that this may send the wrong signal to the crypto and wider financial services markets. The UK remains a highly competitive and innovative hub for developing the technologies which enable digital assets, including crypto derivative products.
“Regulators internationally are increasingly seeing the value of crypto and taking steps to help enable the industry’s growth. Only last month, the European Commission announced their MiCA regulations, which will serve to enable crypto to develop in a more sustainable, accountable way. Copper has always been focused on making it easier, safer and more secure for institutional investors to buy and sell digital assets, and we hope that the increased attention from regulators will mark a step forward for crypto in becoming a mainstream asset.”