According to Cointelegraph's October 22 report, the UK government recently stressed that it is up to the regulators, not the executives of cryptocurrency exchanges, to push forward the proposed ban on cryptographic derivatives for retail investors.
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According to Finance Feeds, on October 21st, British Finance Minister John Glen responded to a series of questions about the UK's attitude towards crypto assets, including the Financial Conduct Authority's proposal. The cryptocurrency ban. Glenn did not give a clear answer, but stressed:
“The final decision will be made by the Financial Market Conduct Authority, which is operationally independent of the government.”
The government will "continue to support" the practice of regulators
In the UK Cryptoasset Taskforce Final Report, which was first announced in July 2018 and updated in October of that year, the FCA publicly promised to issue a consultation paper on possible prohibition of spread contracts ( CFD) and cryptographic derivatives such as exchange-traded instruments (ETN).
Glenn mentioned the FCA's commitment and stressed that "the government will continue to support the approach outlined in the Encrypted Assets Task Force report, which is considered to be the right way to promote innovation while protecting consumers and businesses."
According to the Finance Feeds report, some of the issues raised with the Minister of Finance specifically mention that the FCA has received many formal complaints from consumers about the sale and distribution of ETNs involving cryptographic assets.
At the time of launching the consultation paper, the FCA stated that it believed that non-professional traders could not reliably assess the value and risk of encrypting CFD and CFD products.
FCA believes that this is caused by the following reasons: inherent difficulties in determining the reliable basis of the value of the underlying asset; market abuse and the prevalence of financial crime, such as hacking into the secondary encryption market; extreme volatility of asset classes; consumer encryption Lack of awareness of assets; lack of clear investment needs for investment products involving cryptographic assets.
FCA proposed at the time that retail investors would save between 267 million and 451 million pounds a year if the ban was imposed.
Although the FCA is still considering restricting retail investors to trade spread contracts, it has concluded that the mainstream cryptocurrency is a “transactional token” and is not covered by the FCA.
In September, the UK's regulated public exchange, Coinshares, claimed that the FCA did not provide sufficient evidence to justify the proposed ban on cryptocurrency ETN.
Earlier this month, the World Trade Union's World Federation of Exchanges, a group of publicly regulated exchanges, urged FCA not to impose a ban on spread contracts.