FCA bans retail sales of crypto-derivatives

FCA has published final rules to ban the sale to retail customers of derivatives and ETNs that reference certain types of crypto-assets.  The new rules define “unregulated transferable cryptoassets” as tokens that are not “specified investments” or e-money and can be traded, and ban the sale, marketing and distribution to any retail consumer of any derivative or ETN that references unregulated transferable cryptoassets by firms acting in or from the UK.

The new rules, which amend the Glossary and COBS (including introducing a new COBS 22.6) take effect on 6 January 2021.