UK's financial regulator FCA considers ban on cryptocurrency derivatives

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The Financial Conduct Authority (FCA) in the UK plans to launch a consultation on a potential ban on the sale of derivatives, based on cryptocurrency coins like Ethereum, Bitcoin and Dash – a move that counts as the first major effort to regulate the growing crypto market.

The consultation on whether to ban retail trade with cryptocurrency based derivatives like CFDs (Contract for Difference) options and futures, will be held in the first quarter of next year.

“A combination of market immaturity, illiquidity and a lack of available information regarding the market give rise to concerns about market integrity,” FCA says in its statement, adding that in their opinion “crypto assets have no intrinsic value and investors should therefore be prepared to lose all the value they have put in”.

Source: https://theforexreview.com/2018/10/30/uks-fca-consider-ban-on-crypto-derivatives/