FIN.

FCA considers ban on sale of crypto-derivatives to retail consumers

The FCA has published a consultation paper on prohibiting the sale of derivatives and exchange traded notes (ETNs) referencing certain types of cryptoassets to retail customers.

The FCA considers such products to be ill-suited to retail consumers who cannot reliably assess the value and risks of derivatives or ETNs that reference certain cryptoassets due to extreme volatility in cryptoasset prices movements, inadequate understanding by retail consumers of cryptoassets, the prevalence of market abuse and financial crime in the secondary market for cryptoassets, and the inherent nature of the underlying assets.

This consultation follows policy statement (PS19/18), which finalised rules restricting the sale of CFDs and CFD-like options to retail clients.

FIN. Team