UK Regulator Seeks Ban on Crypto-Derivatives and ETNs to Retail Investors

UK markets regulator the Financial Conduct Authority (FCA) has proposed a ban on the sale of cryptoasset derivatives and exchange-traded notes (ETNs) to retail consumers.

The FCA said in a press release on its website that it considered such products "ill-suited" to retail investors who are unable to "reliably assess the value and risks of derivatives or ETNs that reference certain crypto-assets".

Explaining the Move

The regulator said it was considering such a move because:

The inherent nature of the underlying assets (cryptoassets) gives them no reliable basis for valuationMarket abuse and financial crime (including cybertheft from cryptoasset platforms) is prevalent in the secondary marketCryptoasset prices are prone to extreme volatilityRetail customers have an inadequate understanding of cryptoassets and there is a lack of a clear investment need for investment products referencing them

The FCA added:

"These features mean retail consumers might suffer harm from sudden and unexpected losses if they invest in these products." Read More at CryptoGlobe...

#UK #Trading

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