U.K. Finance Watchdog Proposes Retail Crypto Derivatives Ban
A logo sits on a sign in the reception area of the headquarters of the Financial Conduct Authority in London.
Photographer: Chris Ratcliffe/Bloomberg
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The U.K.’s financial services regulator is proposing a ban on retail sales of derivatives tied to some crypto assets, as it seeks to clamp down on risky financial products.
The Financial Conduct Authority said cryptocurrencies have no reliable basis for valuation, while market abuse and financial crime are prevalent in the secondary market for digital assets. The watchdog estimates that a ban on retail trading could prevent between 75 million pounds ($94 million) and 234.3 million pounds in losses a year, according to a statement on Wednesday.