September 20, 2020

World Exchanges Federation urges FCA not to ban cryptocurrency derivatives

World Exchanges Federation urges FCA not to ban cryptocurrency derivatives

In response to the FCA's plans, the World Federation of Exchanges (WFE) calls for a ban on sales digital 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.

British Regulator (FCA) proposed in summerban the sale of cryptocurrency contracts to all retail consumers. According to the regulator, retail consumers lose money by investing in an extremely volatile market.

Association employees note that proper and balanced regulation will allow the market to flourish and benefit its consumers.