The Financial Conduct Authority is considering a ban on crypto derivatives (in particular, cryptocurrency contracts-for-difference).
The regulator stated during the conference held in London that FCA is going to consult on the restrictions that may cover sales of crypto derivatives to retail investors.
"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," said in his speech FCA Executive Director, Christopher Woolard.
As he commented, the special task force that was aimed at studying the crypto issue has created three categories for cryptos – "exchange tokens", "security tokens" and "utility tokens." It is rumoured that the possible ban will cover options, futures and securities that can be passed from one player to another.
In fact, the UK authorities have given a late response to the cryptos which are getting more and more popular and related financial solutions, so the current moves seem to be their attempts to catch up.
Speaking about the future, FCA representative said that the regulator will "undertake one of the most comprehensive responses globally to the use of crypto assets for illicit activities by applying and going further than the existing directive, the fifth EU Anti-Money Laundering Directive (5AMLD)."
At the same time, the regulator will provide the companies with the guidance that may make clear the frameworks of the existing crypto rules by end-2018, as the report reads.