The FCA officially banned cryptocurrency derivatives on UK soil this week. The FCA additionally banned the sale of exchange-traded notes (ETNS).
According to the FCA, digital coin instruments are untrustworthy and they come with in-built unreliable aspect, can be easily manipulated by scammers and are very hard to predict.
The agency issued out a statement:
“The FCA considers these products to be ill-suited for retail consumers due to the harm they pose”
The agency also considers British investors incompetent in regards to trading crypto derivatives – they believe that locals don’t have the skill or knowledge to do so.
I generally welcome reasonable regulation, but I find this particular decision to be a bit too paternalistic.