British investors threatens to ban crypto-derivatives?
The FCA in the UK thinks aloud about banning crypto-to derivative products. Small investors could be allowed to trade in 2020 under
The Supervisory authority may take new direction
Complete bans on trading derivatives on Cryptocurrencies such as Bitcoin, Ethereum, or Litecoin, you will know far more from Asia. While China is considering for some time a ban on crypto-Mining, is considered in India a complete ban on digital currencies into consideration. We have previously reported about such plans and Considerations of the state. Last of Austria had the obligation to register for crypto-companies from 2020, as well as the German Blockchain strategy of media attention. Now the FCA of the United Kingdom reports with quite critical Considerations to word. At least from the point of view of investors, interested in innovative financial products in connection with the crypto market. The authority is apparently considering to implement in the future, a partial ban of so-called crypto-derivatives.
Enormous losses from a thematic ignorance?
“Partially” here means: The Financial Conduct Authority is considering in the context of a consultation on retail investors trading Futures, options and other derivatives in connection with currencies such as Ethereum, Ripple and other Altcoins to say. What sounds to the reader like a patronizing Mature investors, has a statistical basis. If in the coming year, 2020 is a decision with respect to a flat ban for small investors, the high losses of the past, an important reason. According to the financial Supervisory authority, the loss of the middle of the year 2017 and end of 2018, amounted to almost 0.5 billion US dollars. A hefty sum. The reason for the Failure of the investors, the lack of Know-how, according to the authority’s priority. Even Amateur investors assessed the risks incorrectly.
Special attention of the trade, with leverage, by the Trader when trading derivatives on Bitcoin and co. many times your own capital can use receives. To high trading fees platforms, the FCA-experts also see a problem.
Investors should be protected against high losses
For the protection of small investors, you might be now says from next year onwards, simply of the trade. However, The prohibition should relate only to prospects that have no accreditation. Exactly how an accreditation process might look like is still to be seen. The FCA promises to be at least a lot of a possible binding of the trade at this point. Each year, the investor could reduce losses by approximately $ 290 million. Opponents of the regulatory Considerations to keep somewhat of a blanket ban on model. In particular, investors could have national bans to search for relevant platforms in foreign Vera. These mountains are also risks, as it is not anywhere comparable requirements for the protection of investors to apply.
Representatives of the crypto industry will see even more of a reason for the inroads of the British authority. Presumably it is more about the rapid market growth to stop or at least slow down. For the correctness of the previous decision is too little evidence available simply.
Featured Image: By Andrii Yalanskyi | Shutterstock.com
