Global Exchanges Urge FCA To Back Down On Its Proposed Ban On Crypto-Linked Derivates

crypto derivatives
crypto derivatives

Global Exchanges Urge FCA To Back Down On Its Proposed Ban On Crypto-Linked Derivates

Following FCA’s proposed ban on derivatives assets linked to cryptocurrencies such as bitcoin, global exchanges are urging FCA to reconsider its proposed ban on these asset types and continue to allow retail consumers to trade these assets on their platforms.

FCA Moves To Ban Crypto-linked Derivatives

Britain’s financial watchdog, Financial Conduct Authority (FCA) in July reported that crypto assets were ill-suited to retail investors who couldn’t make informed financial decisions. Therefore, the financial authority proposed to ban crypto-linked derivatives next year. The final changes will be announced in early 2020.

World Federation of Exchanges Says They Are Well Equipped To Protect Retail Investors

However, many crypto exchanges under the umbrella of The World Federation of Exchanges (WFE) are maintaining that these exchanges trading crypto-linked derivatives are well equipped to protect retail consumers. According to the World Federation of Exchanges (WFE),

“The WFE recognises 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,”

Further explaining their stance on the issue, WFE expressed that exchanges and clearing houses under the association are well regulated, a condition which significantly reduces the risk for retail investors while trading crypto-link derivates.

British FCA has always been skeptical about cryptocurrencies. Recently, in August, Coingape reported that The British Financial Conduct Authority, FCA, issued a rather strict warning in a guideline released Wednesday 31st July that cryptocurrencies like Bitcoin, Ethereum and Ripple are unregulated assets. It also alerted investors of the risks involved in purchasing these assets as they were not covered by the Financial Services Compensation Scheme and consumers did not have recourse to the Financial Ombudsman Service. At the time, the report had aimed to inform crypto market participants on the knowledge of whether or not their activities lie within FCA regulatory boundaries.

Summary
Global Exchanges Urge FCA To Back Down On Its Proposed Ban On Crypto-Linked Derivates
Article Name
Global Exchanges Urge FCA To Back Down On Its Proposed Ban On Crypto-Linked Derivates
Description
Following FCA's proposed ban on derivatives assets linked to cryptocurrencies such as bitcoin, global exchanges are urging FCA to reconsider its proposed ban on these asset types and continue to allow retail consumers to trade these assets on their platforms.
Author
Publisher Name
Coingape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: Dare Shonubi

Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
You can follow me on Twitter at @ShonubiDare or reach out to me at dare[at]coingape.com

Post your comment...
Dare Shonubi 247 Articles

Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
You can follow me on Twitter at @ShonubiDare or reach out to me at dare[at]coingape.com

Follow Dare @