As per the reports of Finance Magnates, Nov. 20, the financial regulators of United Kingdom, the Financial Conduct Authority (FCA) is planning to ban the crypto derivatives like futures. The step is being taken as a response to the crypto industry.
Christopher Woolard, director of Financial Conduct Authority (FCA), in his speech at London conference, which was held on Tuesday, said that the authority will talk and make a decision regarding the ban of crypto contracts-for-difference (CFDs). This, according to Finance Magnates, will aid in the other things like futures, options, and transferable securities.
“We are more concerned that the retail consumers get complex, leveraged, and volatile derivatives products that are dependent upon the exchange tokens, that indirectly hidden the integrity market affairs.” a publication quoted Woolard.
The United Kingdom is depicted to be in a regulatory dilemma because of its delay in the response to the uprising popularity of the crypto and other associated instruments, as various groups are criticizing the intentions of the Financial Conduct Authority (FCA).
As per the reports of a news outlet, the idea behind the ban of crypto derivatives first emerged in October. In the conference, Woolard was underlying upon the ‘taskforce’ which started constructing recommendations in March. The group had described the digital currency in three major types; composing exchange tokens like utility tokens, security tokens, and BTC.
Woolard, in order to tackle the unauthorized use of the tokens, discussed other significant plans to take on what he called the most inclusive responses to use the virtual currency for illegal activities.
As per the latest survey reports, the qualities like ownership, awareness, and knowledge regarding BTC among the citizens of U.K. has increased so far.