UK considers crypto derivatives ban

Posted 21 November, 2018

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.

Previous story

21 November, 2018 12:09

← Bakkt launch delayed till January

The operator of New York Stock Exchange, Intercontinental Exchange (ICE), stated that the official launch of the Bakkt crypto trading platform has been delayed till January 2019. The company is said to consider expanding the initial offering. As the company representative said, they will release more information in the near term. It is possible that the delay can be partly related to the regulatory approvals, which were expected in November.

Bakkt launch delayed till January

Next story

20 November, 2018 14:41

KuCoin announces trading pairs changes →

KuCoin trading platform plans trading adjustments on the exchange, that may cover listing and delisting of the cryptocurrencies. The company posted a notice on its website regarding changes to the pairs that are offered at the platform for now. KuCoin will remove only trading pairs, while tokens "will not be affected". This means that users will maintain their access to the assets.  The decision to delist certain pairs is said to be driven by low daily trading volumes, which reach just some $300-500.

KuCoin announces trading pairs changes
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