NewsyList

British authorities are divided on a ban on the sale of cryptocurrency investment products

UK policymakers are divided on whether to ban the sale, trading and distribution of derivatives and exchange-traded notes, linked to cryptocurrencies.

42 total views

1 Total number of shares

British authorities are divided on a ban on the sale of cryptocurrency investment products

UK policymakers are divided on whether to ban the sale, trading and distribution of cryptocurrency-linked exchange-traded notes (ETNs) and derivatives to retail investors. The Regulatory Policy Committee considers that the measure, adopted in 2021, is not justified in the current circumstances.

Britain’s main regulator, the Financial Conduct Authority (FCA), imposed the ban in January 2021. Since then, companies They can no longer offer cryptocurrency derivative products, such as futures, options, and ETNs, to retail clients.

  • 90% of companies are adopting Blockchain technology, according to data

The general ban was imposed despite 97% of respondents to the FCA inquiry opposing the “disproportionate” ban, and many argued that retail investors are capable of assessing the risks and value of crypto derivatives.

On January 23, the Regulatory Policy Committee (RPC) -public advisory body financed by the Ministry of Business, Energy and Industrial Strategy- He gave his reasons against the ban from FCA.

Using cost-benefit analysis, the RPC assessed the annual losses from the measure at some £268.5 million (USD 333 million). As the RPC asserts, the FCA did not provide a clear explanation of what specifically would occur in the absence of the ban. Nor did it explain the methodology and calculations to estimate the costs and benefits at the time. On this basis, the RPC rates the ban at the “red” level, meaning it is not fit for purpose.

  • SEC’s ‘one-dimensional’ approach holding back bitcoin’s progress, says Grayscale CEO
See also  The National Health Service cannot have an equal answer for everyone

The RPC’s negative review does not necessarily lead to the direct repeal of the legislation. However, given the committee’s link to the Department for Business, Energy and Industrial Strategy, it may mark the different way of understanding prudent regulation by the FCA and the government.

Last year, the UK financial authorities made a number of significant efforts to encourage the development of the digital industry. For example, “designated crypto assets” were included in a list of investment transactions that are eligible for the Investment Manager Exemption.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Keep reading:

  • 90% of companies are adopting Blockchain technology, according to data
  • SEC’s ‘one-dimensional’ approach holding back bitcoin’s progress, says Grayscale CEO
  • The UK seeks a cryptocurrency crime expert with a salary of USD 50,000
  • Bitcoin Lightning Network will be used in fiat transfers between the EU and Africa
  • Bank of England opens applications for ‘proof of concept’ wallet for its CBDC
  • British cryptocurrency bill will restrict services from abroad
  • Bitcoin price reaching $25,000 would be fatal for short sellers

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.

See also  Volg branches in Wales are struggling with staff shortages - now tourists are tackling it

Share:

Facebook
Twitter
LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Social Media

Most Popular

On Key

Related Posts