June 19, 2024

World Exchanges Federation urges FCA not to ban cryptocurrency derivatives

World Exchanges Federation urges FCA not to ban cryptocurrency derivatives

In response to the plans of the Financial Supervisory Authority (FCA), the World Federation of Exchanges (WFE) calls forDo not prohibit the sale ofdigital securities to retail consumers.

WFE supports the regulator’s desire to protect retail investors, but instead of prohibiting it, offers to allow derivatives trading for retail consumers on fully regulated exchanges.

WFE representatives expressed the view thatregulated exchanges and clearing companies recognize that ensuring consumer protection is a priority. They believe that the ban on cryptocurrency derivatives, which the FCA plans to prepare for the first quarter of next year, is not the best way to protect retail investors.

In the summer, the British regulator (FCA) proposed to ban the sale of cryptocurrency contracts to all retail consumers.According to the regulator, retail consumers are losing money by investing in an extremely volatile market. 

Employees of the association note that proper and balanced regulation will allow the market to prosper and benefit its consumers.