FCA proposes ban on sale of crypto derivatives to consumers
Regulator cites lack of understanding of crypto assets by consumers
The UK’s Financial Conduct Authority has proposed a ban on selling derivatives that reference crypto assets to retail customers.
In a statement on June 3, the FCA said crypto derivatives and exchange-traded notes that reference certain types of crypto assets are “ill-suited to retail consumers”, as many people struggle to assess their value and risks.
The FCA cited the extreme volatility of crypto assets, the prevalence of financial crime in the sector, and the “inherent nature of the
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