Crypto Derivatives banned for Retail Customers in the United Kingdom
By Max Steadman – Cryptocurrency Enthusiast
The Financial Conduct Authority (FCA) has issued their rulings, outlawing the selling of crypto-asset derivatives and exchange-traded notes (ETNs) in the UK for retail consumers.
The U.K. financial regulator declared these crypto products to be unsafe for retail consumers on the 6th of October, as more people participate in crypto buying. They claim that the following factors are what make the trading arrangements unreliable:
The FCA categorizes these transferable assets as coins that do not appear as ‘specified investments.’ In their grouping, they include key cryptocurrencies such as Bitcoin, Ethereum and XRP. The ban in the UK will be effective as of January 6th next year.
Sheldon Mills, the interim executive director of Strategy and Competition at the FCA, stated that this act reflects how committed they are towards the potential threat to retail consumers from these Bitcoin investment tokens.
This decision comes at a time when BitMEX, a cryptocurrency trading platform, have allegedly been involved in unregulated cryptocurrency trading relating to crypto derivatives. The Commodities Futures Trading Commission reported on Oct. 1st that the exchange unlawfully made digital asset derivatives available to traders, while the Department of Justice charged the CEO and others with breaching the Bank Secrecy Act.
Please be assured this does not affect any coins you are holding with BC Bitcoin. It also will not affect any coins you wish to buy, sell, or exchange with us in the future as we provide the crypto-asset itself.
The FCA’s announcement is referring to crypto-asset derivatives which is a different product that will not impact or affect our services. This decision is solely to protect retail consumers from the complexity, volatility, and harm of these types of financial instruments.
You can Buy and Sell Bitcoin on our platform today or get in touch with a member of our team. Whether it is a question about this announcement or any industry news, please don’t hesitate to contact your Bitcoin broker today.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards