The Financial Conduct Authority (FCA), the organisation tasked with serving as the financial watchdog of Great Britain, is reportedly planning to impose a ban on the practice of selling crypto derivatives to retail investors. This was revealed in an official document published on the 1st of July, 2019.
The document is titled “Restricting contract for difference products sold to retail clients” and in it, the FCA reveals that they are planning to come out with a consultation paper soon to implement a possible ban on the sale of Bitcoin futures and other such crypto trading products and derivatives.
As the FCA detailed in the official document:
“We will shortly publish a CP on a potential ban on the sale to retail clients of derivatives and certain transferable securities that reference cryptoassets.”
The regulatory body clarified that this move comes in the wake of a public commitment they had undertaken as part of the US Cryptoasset Taskforce Final Report, published in the month of July last year, and updated in the month of October in the same year.
The FCA focused on the fact that the new rules that will be a part of the consultation paper, will serve to replace the final regulations on the crypto-based contracts for difference or CFDs.
A representative of the FCA has, according to reports, stated that the body will soon enforce a ban on the sale of certain crypto asset-related products to retail investors. According to a quote published by crypto media outlet Crypto Briefing, the representative commented;
“[W]e will be consulting on potentially banning the sale to retail customers of derivatives linked to certain cryptoassets this year.”
The recent months have seen increasing efforts to regulate the crypto sector and bring it within the folds of responsible regulation and this move seems to be a reflection of that same trend.