The UK announced that the sale of crypto derivatives to retail consumers is prohibited, stating that crypto derivatives pose a risk to consumers and have the potential to harm.
The UK Financial Conduct Authority (FCA) announced that cryptocurrencies were deemed “inappropriate” for retail consumers for many reasons, and the sale of cryptocurrency derivatives to retail users was officially prohibited.
“We have evidence that this is happening significantly,” said Sheldon Mills, FCA Managing Director of Interim Strategy and Competition, that high price fluctuations in digital assets pose the risk of damage to retail consumers in trading crypto derivatives.
The ban, which will officially take effect on January 6, 2021, will cover all companies operating in the UK. “This ban reflects how seriously we take the potential harm to retail consumers in these products. Consumer protection is the first thing we think about. ” stated that the ban will be put into effect for consumers.
According to the statements of the UK Financial Conduct Authority, the cryptocurrency ban will enable retail consumers to save 53 million pounds (535 million 587 thousand 478 TL). It is currently unknown how the company and consumers who use cryptocurrency will react to the ban.