{"id":29685,"date":"2020-10-06T13:45:27","date_gmt":"2020-10-06T10:45:27","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=29685"},"modified":"2025-08-27T18:24:18","modified_gmt":"2025-08-27T15:24:18","slug":"uk-regulator-bans-sale-of-cryptocurrency-derivatives-to-retail-investors","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/uk-regulator-bans-sale-of-cryptocurrency-derivatives-to-retail-investors\/","title":{"rendered":"UK regulator bans sale of cryptocurrency derivatives to retail investors"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The UK Financial Conduct Authority (FCA) <a href=\"https:\/\/www.fca.org.uk\/news\/press-releases\/fca-bans-sale-crypto-derivatives-retail-consumers\" target=\"_blank\" rel=\"noopener noreferrer\">banned<\/a> the sale of cryptocurrency-based derivatives and exchange-traded notes (ETNs) to retail traders.<\/span><\/p>\n<p><!--more--><\/p>\n<p><span style=\"font-weight: 400;\">The FCA says these products are not suitable for retail investors for a number of reasons. Among them, the regulator cited retail investors\u2019 insufficient understanding of crypto assets and the volatility of digital currencies. As a result, retail traders cannot fully assess the risks associated with such products, the FCA argues.<\/span><\/p>\n<p>The ban would reduce annual losses for retail investors by between \u00a319 million and \u00a3101 million, according to the regulator.<\/p>\n<p>The new rules apply to:<\/p>\n<ul>\n<li>companies issuing crypto derivatives;<\/li>\n<li>their providers, including brokers, investment platforms and financial advisers;<\/li>\n<li>firms promoting such products;<\/li>\n<li>operators of trading platforms;<\/li>\n<li>retail consumers and consumer organisations.<\/li>\n<\/ul>\n<p>The ban takes effect on 6 January 2021.<\/p>\n<p><span style=\"font-weight: 400;\">The FCA had signalled its intention to ban the sale of cryptocurrency derivatives to retail investors as far back as 2018.<\/span><\/p>\n<p>The regulator began consultations on the issue last year.<\/p>\n<p>In October 2019, the World Federation of Exchanges, which groups exchange operators including Intercontinental Exchange (ICE), Nasdaq, Deutsche B\u00f6rse, CME Group and London Stock Exchange Group, urged the FCA to abandon the initiative.<\/p>\n<p>Follow ForkLog updates on Telegram: <a href=\"https:\/\/t.me\/forklogfeed\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog Feed<\/a> \u2014 the full news stream, <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog<\/a> \u2014 the latest news and polls.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The UK Financial Conduct Authority (FCA) banned the sale of cryptocurrency derivatives and exchange-traded notes (ETNs) to retail traders.<\/p>\n","protected":false},"author":1,"featured_media":29686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1168,1726,36,810],"class_list":["post-29685","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-crypto-derivatives","tag-fca","tag-regulation","tag-united-kingdom"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/29685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=29685"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/29685\/revisions"}],"predecessor-version":[{"id":29687,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/29685\/revisions\/29687"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/29686"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=29685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=29685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=29685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}