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British Watchdog Bans Sale of Derivatives Crypto Coins to Consumers

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The UK financial regulator Financial Conduct Authority prohibits the sale of crypto derivatives to ordinary consumers.

 

According to the FCA, these complex financial products are unsuitable for private investors because there are significant risks of financial damage.

Using derivatives, investors can speculate on the price movements of crypto coins such as bitcoin without actually owning them.

The FCA says the ban will prevent £ 35 million in annual losses for consumers. The measure will take effect from January 6, 2021.

The Financial Conduct Authority already proposed a ban on derivatives linked to digital currencies last year.

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