September 20, 2020

Operator Bakkt, CME and Nasdaq urge British regulator not to ban cryptocurrency derivatives

The World Federation of Exchanges (WFE) asked the UK Financial Regulatory Authority (FCA) does not prohibit the sale of cryptocurrency derivatives to retail investors.

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WFE brings together 70 exchange operators, including the Intercontinental Exchange (ICE), Nasdaq, Deutsche Boerse, CME Group and London Stock Exchange Group.

According to the industry association, FCA is necessarystrike a balance to allow innovative products to be sold in the UK and ensure that this is done by the responsible regulated providers.

“We ask the authorities, including the FCA, to set the right course of regulation in order to allow the market to flourish and benefit consumers, even if we understand that this is a compromise.”“Said WFE CEO Nandini Sukumar.

Recall that in June the FCA launched a consultation onban cryptocurrency derivatives for retail investors due to their high volatility. The regulator estimates that this will prevent investors from losing from £ 75 million to £ 234.3 million per year.

FCA voiced the idea of ​​such a ban last year.