FCA UK Bans Sale of Crypto-CFDs to Retail Traders
The FCA officially banned cryptocurrency derivatives on UK soil this week, although the change will be actually implemented from January next year. To clarify, the sale all CFD’s, options and futures based on the price of Bitcoin, Etherium, Litecoin and other cryptos will be available only to what the FCA refers to “sophisticated investors”.
By the FCA’s definition, those are investors that have made at least two trades with two different brokers for the past twelve months. The FCA also recognizes high net traders, which is a person with a yearly income of 100, 000 GBP or net assets worth 250, 000 GBP. The FCA intends to implement stricter criteria for traders to qualify in either of these cathegories.
According to the FCA, the reasons for this ban is the high levels of crime in the crypto industry plus traders’ lack of understanding of it, which in turns enables the scams.
I am not sure whether this will help with the scams or make matters worse, to be honest.
© Crypto Craft