Exchanges plea to UK FCA not to ban crypto linked derivitives
|Last week there was a story circulating in the markets that the UK's FCA was about to ban or declassify crypto derivatives.
In a public consultation paper, the Financial Conduct Authority is said to have proposed a ban on sales of the products to retail customers. they will announce final rule changes in early 2020 but it is not yet confirmed.
Now the World Federation of Exchanges (WFE) have had their say and think there is a need to find the right balance between enabling innovative products to be traded in Britain, and ensuring consumers are well protected.
“The WFE recognizes the volatility identified by the FCA in its consultation report and is supportive of ensuring that proper consumer protection is put in place as a priority for any new and relatively untested product on the market,”
It has been said that there will be a period in which the exchanges can appeal the decision if it comes about and WFE added:
“This review is also designed to avoid international market fragmentation, particularly if international standard setters introduce a new global regulatory approach to the regulation of crypto assets,”
So we will have to wait until next year to find out which assets will be banned or classified as gambling.
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