[2019-07-01]British Regulator FCA Prepares a Potential Ban of Crypto CFDs for Re

[Vladdirescu87]

British Regulator FCA Prepares a Potential Ban of Crypto CFDs for Retail Investors

British financial watchdog, the Financial Conduct Authority (FCA), is preparing a potential ban on the sale of crypto derivatives to retail investors, according to an official document released on July 1.

In the document, titled “Restricting contract for difference products sold to retail clients,” the FCA revealed that the regulator will soon publish a consultation paper (CP) on a potential ban on crypto derivatives such as bitcoin (BTC) futures and other crypto-related trading products.

The FCA wrote:

“We will shortly publish a CP on a potential ban on the sale to retail clients of derivatives and certain transferable securities that reference cryptoassets.”

https://cointelegraph.com/news/british-regulator-fca-prepares-a-potential-ban-of-crypto-cfds-for-retail-investors

[squatter]

In the document, titled “Restricting contract for difference products sold to retail clients,” the FCA revealed that the regulator will soon publish a consultation paper (CP) on a potential ban on crypto derivatives such as bitcoin (BTC) futures and other crypto-related trading products.

The FCA wrote:

“We will shortly publish a CP on a potential ban on the sale to retail clients of derivatives and certain transferable securities that reference cryptoassets.”

I wonder how this will affect British traders at BitMEX. Another country-wide ban incoming? I don't think they call their products CFDs but that's essentially what they are -- at least all their altcoin contract markets which are settled in Bitcoin.

[cr1776]

People should be free to make their own decisions, good or bad, and then live with the consequences.  That is kind of what is happening, you elect control freaks, they control.
Perhaps though, the positive will be that people will buy actual bitcoin instead of derivatives.

The nanny state control freaks just love to control people.

[Carlton Banks]

sounds dangerous, god forbid that people who aren't gangster-ment protected cohorts can make money in financial markets. this wagon circling initiative is to protect the poor little sweethearts from losing their money and having their feelings hurt, go uk.gov!!!

[1Referee]

I wonder how this will affect British traders at BitMEX. Another country-wide ban incoming? I don't think they call their products CFDs but that's essentially what they are -- at least all their altcoin contract markets which are settled in Bitcoin.

I'm pretty sure this only concerns legacy brokers offering cash settled contracts, but even if it will end up covering Bitcoin settled contracts, people don't care anyway. As long as Bitmex doesn't require you to walk yourself through a KYC/AML procedure, people will use VPN's to access that platform.

It's funny though, some of these legacy brokers offer 400x leverage products where people can lose all their money in a fraction of a second, yet these products will remain unharmed. Makes sense. 

[gentlemand]

As long as Bitmex doesn't require you to walk yourself through a KYC/AML procedure, people will use VPN's to access that platform.

I don't think it'll ever get to that. It's only America that's vituperative enough to force website operators to give Americans the boot.

This'll mean no British regulated company or British platform can offer this stuff. If you want to shop elsewhere then off you go and don't expect your hand to be held.

[BitHodler]

People should be free to make their own decisions, good or bad, and then live with the consequences.  That is kind of what is happening, you elect control freaks, they control.
Perhaps though, the positive will be that people will buy actual bitcoin instead of derivatives.

The nanny state control freaks just love to control people.

This reminds me of how various banks (IIRC it was also playing out within the UK) no longer allowed their clients to buy crypto with credit. People will have less and less of a say as time goes by.

For every negative there is a positive, which in this case is indeed people being steered by ridiculous policies to buy spot. The less CFD and futures that aren't backed by the underlying asset the better it is for Bitcoin in my opinion.

All these non backed CFDs, futures, ETFs turned gold's market into a pile of rubbish. The ratio between spot gold volume and derivative volume is beyond insane-- 1:50 / 1:70 isn't uncommon.