Britain may ban some retail financial products based on bitcoin and other crypto assets and widen its regulatory net to capture potentially “illicit activity” that could harm consumers and markets, a government-backed taskforce reported on Tuesday.

The move, unveiled on Monday alongside the Budget, will see the Financial Conduct Authority consult in the first quarter of next year on a possible prohibition of CFDs, options and futures linked to crypto assets.

“The Taskforce has concluded that strong action should be taken to address the risks associated with crypto assets that fall within existing regulatory frameworks,” the report said.

The paper noted that the FCA has already supported ESMA’s restrictions on contracts for difference (CFDs) that reference cryptocurrencies, a measure that took effect last August 1.

The FCA said it has made clear that crypto assets have no intrinsic value and investors should, therefore, be prepared to lose every penny invested.

“The risk of trading losses can be exacerbated by product fees such as financing costs and spreads, as well as by a lack of transparency in the price formation of the underlying crypto assets,” the regulator mentioned at at a time when successful financial firms in the UK, including Plus500 and IG Group, are showing higher revenues from crypto-derivate trading.

UK Government Considering Ban On Crypto Derivatives

Read More Via the Link Below


Like it? Share with your friends!

489
852 shares, 489 points

What's Your Reaction?

lol lol
400
lol
scary scary
333
scary
omg omg
266
omg
wtf wtf
133
wtf
win win
666
win
fail fail
600
fail
Love Love
533
Love
hate hate
266
hate
confused confused
466
confused

Leave a Reply

avatar
  Subscribe  
Notify of
Choose A Format
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Image
Photo or GIF
Video
Youtube, Vimeo or Vine Embeds
Gif
GIF format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Countdown
The Classic Internet Countdowns