UK markets watchdog proposes retail ban on crypto derivatives
LONDON (Reuters) - Britain’s markets watchdog is proposing banning the sale of derivatives based on crypto-assets to retail consumers from early 2020 due to what it considers the prevalence of market abuses. Prices of crypto-assets - which include currencies like bitcoin as well as tokens representing other tradeable assets - are very volatile, and there is a lack of a clear investment need for products referencing them, the Financial Conduct Authority said on Wednesday. The FCA “considers these products are ill-suited to retail consumers who cannot reliably assess the value and risks of derivatives or exchange traded notes (ETNs) that reference certain crypto-assets,” it said in a statement on its public consultation on the proposed ban. Such a blanket ban on crypto derivatives will force customers to use unregulated providers offering less protection, said Jake Green, a financial regulatory partner at law firm Ashurst. “The real question is whether the FCA is sho...