Global exchanges are begging the UKs Financial Conduct Authority (FCA) not to ban the sale of cryptocurrency-based derivatives.<\/p>\n
The World Federation of Exchanges said today that there is a need to find a balance between innovation and keeping consumers protected, Reuters reports. But it doesnt think banning cryptocurrency-based investment products is the right answer.<\/p>\n
The WFE recognizes the volatility identified by the FCA in its consultation report and is supportive of ensuring that proper consumer protection is put in place as a priority for any new and relatively untested product on the market, the WFE said in a statement.<\/p>\n
Earlier this year, the FCA proposed a blanket ban on cryptocurrency-related investment products in an attempt to protect retail investors.<\/p>\n
In July, the FCA said thatcryptocurrency-based derivatives and exchange traded notes, were ill-suited to retail consumers who cannot reliably assess the value and risks.<\/p>\n
Heres the thing, exchanges that are part of the WFE are regulated, and so, investors are protected. The issue lies with the unregulated exchanges offering cryptocurrency derivatives.<\/p>\n
By banning these products, it immediately makes the act of selling them unlawful and in theory should protect investors. But even the regulated exchanges will be affected if this happens.<\/p>\n
At the moment, the FCAs proposed ban is under consultation, meaning industry bodies have the opportunity to give their feedback.<\/p>\n
According to Reuters, the FCA will announce the final rule changes in early 2020.<\/p>\n
Want more Hard Fork?Join usin Amsterdam on October 15-17 to discuss blockchain and cryptocurrency with leading experts.<\/p>\n
Published October 7, 2019 14:27 UTC <\/p>\n
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View post: Global exchanges are begging the UKs Financial Conduct Authority (FCA) not to ban the sale of cryptocurrency-based derivatives. The World Federation of Exchanges said today that there is a need to find a balance between innovation and keeping consumers protected, Reuters reports. But it doesnt think banning cryptocurrency-based investment products is the right answer. Continue reading
\nInternational exchanges campaign against UK cryptocurrency derivatives ban - The Next Web<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"