UK’s Cryptoasset Taskforce To Seal The Fate of Cryptocurrency Derivatives.

There is a possibility that cryptocurrency derivatives including futures, options and contracts for differences might face prohibition in the United Kingdom, very soon.

In September, UK’s lawmakers referred to the country’s cryptocurrency market as the Wild West, as there had not been enough regulatory measures to protect the interests of the investors. Nicky Morgan, the chairperson of the Treasury Committee in the UK parliament had at that time said,

“Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets. This unregulated industry leaves investors facing numerous risks.”UK

UK’s financial guard dog, the Financial Conduct Authority (FCA) the UK issued a statement, stating that the issue of crypto derivatives will be taken up, between now and the first quarter of next year, and consultations led by the UK Cryptoasset Taskforce will be held on this issue. The press release said,

“A separate consultation by Q1 2019 on a potential prohibition of the sale to retail consumers of derivatives (including contracts for differences, options, and futures) referencing certain types of cryptoassets…”

The Taskforce, which was launched almost seven months ago consists of representatives from several government bodies, institutions and ag .encies, including the Bank of England, Her Majesty’s Treasury (HMT) and the FCA.

The Cryptoasset Taskforce will deliberate on and then decide the course of action with regards to crypto assets which are in equal parts beneficial and risky for the customers, businesses and the markets. They are hoping to provide guidance and guidelines for crypto assets that currently fall under regulations as well as those which do not. They will decide on whether the current framework is okay, or it needs expansion and updating. The Taskforce will also figure out effective regulatory measures for exchange tokens, Exchanges and wallet providers. The Anti Money Laundering Directive of the European Union will be their basis to figure out implementation procedures to control the use of cryptocurrencies in illicit activities.