The U.K.’s Financial Conduct Authority (FCA) has banned the sale of crypto-asset derivatives to UK retail investors from January 2021. This applies to futures, options, contracts for difference (CFDs) and exchange traded notes (ETNs).
The news comes less than a week after the U.S. brought charges against cryptocurrency derivatives exchange BitMEX. Unlike the U.K. where the primary motivation is investor protection, the U.S. has a different agenda. The lawsuit alleges the firm flouted the Bank Secrecy Act and failed to enforce anti-money laundering rules.
While cryptocurrencies can be traceable, it would be harder to track money laundered through an unregulated derivatives exchange.
Note: Sometimes we publish announcements prefixed with a brief commentary.
The FCA has published final rules banning the sale of derivatives and exchange traded notes (ETNs) that reference certain types of cryptoassets to retail consumers.
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