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.