Coingape - 10/7/2019 2:44:09 PM - GMT (+0 )
Following FCA’s proposed ban on derivatives assets linked to cryptocurrencies such as bitcoin, global exchanges are urging FCA to reconsider its proposed ban on these asset types and continue to allow retail consumers to trade these assets on their platforms.
Britain’s financial watchdog, Financial Conduct Authority (FCA) in July reported that crypto assets were ill-suited to retail investors who couldn’t make informed financial decisions. Therefore, the financial authority proposed to ban crypto-linked derivatives next year. The final changes will be announced in early 2020.World Federation of Exchanges Says They Are Well Equipped To Protect Retail Investors
However, many crypto exchanges under the umbrella of The World Federation of Exchanges (WFE) are maintaining that these exchanges trading crypto-linked derivatives are well equipped to protect retail consumers. According to the World Federation of Exchanges (WFE),
“The WFE recognises the volatility identified by the FCA in its consultation report and is supportive of ensuring that proper consumer protection is put in place as a priority for any new and relatively untested product on the market,”
Further explaining their stance on the issue, WFE expressed that exchanges and clearing houses under the association are well regulated, a condition which significantly reduces the risk for retail investors while trading crypto-link derivates.
British FCA has always been skeptical about cryptocurrencies. Recently, in August, Coingape reported that The British Financial Conduct Authority, FCA, issued a rather strict warning in a guideline released Wednesday 31st July that cryptocurrencies like Bitcoin, Ethereum and Ripple are unregulated assets. It also alerted investors of the risks involved in purchasing these assets as they were not covered by the Financial Services Compensation Scheme and consumers did not have recourse to the Financial Ombudsman Service. At the time, the report had aimed to inform crypto market participants on the knowledge of whether or not their activities lie within FCA regulatory boundaries.
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Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
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