coinfomania.com
The Financial Conduct Authority (FCA), the financial regulatory body for the United Kingdom, announced today that it had published final rules to effect a ban on the sale of crypto derivatives and exchange-traded notes (ETNs) to retail investors.
The new rules, which have been in the works since 2019, will now take effect from January 6, 2021, and could set the tone for how regulators around the world treat crypto-based derivative products sold to retail investors. The UK regulator highlighted that the primary reason behind the ban is the need to protect retail investors from risks associated with these products.
Remarkably, the announcement notes the extreme volatility in the price of cryptocurrencies, market abuse related to hacks and cyber theft, lack of retail knowledge about these products, and the lack of legitimate investment need for retail consumers to buy into crypto derivatives.
This is a developing story…
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