FCA eyes retail ban on crypto-derivatives

‘No reliable basis for valuation’

The Financial Conduct Authority (FCA) has proposed a ban on the sale, marketing and distribution of derivatives and exchange traded notes (ETNs) referencing certain types of cryptoassets to retail clients, which it estimates could save consumers up to £234m per year.

Crypto-derivatives, according the FCA, have "no reliable basis for valuation" and high levels of market abuse and crime, while there is also a "lack of a clear investment need for investment products referencing them". FCA: 'Get rich quick' crypto investors do not understand the asset The FCA also noted the "inadequate understanding by retail consumers of cryptoassets" as a reason to stop selling them to the public in an effort to prevent potential harm. Cryptoassets like Bitcoin have been in the regulatory spotlight for two years following bouts of extreme volatility, with the est...