FCA’s Ban on Crypto Financial Instruments Affects UK Retailers

FCA ban

Earlier today, the UK’s market regulator, the Financial Conduct Authority (FCA), announced a proposal that would ban financial instruments linked to digital cryptocurrencies. The regulator has warned that such instruments using cryptocurrencies could incur huge losses for retailers who don’t understand the great risks associated with using them.

The FCA’s Ban Proposal

The FCA is targeting products such as derivatives and exchange-traded notes (ETNs), in particular, but it is also suggested that crypto-assets themselves simply didn’t suit small investors.

It cited cryptocurrencies’ “extreme volatility,” ambiguous value, and the lack of public knowledge surrounding cryptos ...

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