• FXOpen halts retail derivatives sales

    U.K. crypto exchange FXOpen halts retail derivatives sales

    In the wake of an U.K. Financial Conduct Authority ruling, FXOpen tells retail customers to close their positions on crypto asset derivatives before Jan. 5

    In October, the United Kingdom financial market regulator FCA prohibited the sale of such derivatives to retail customers, suggesting that the average investor cannot understand them. FXOpen’s moves puts it in compliance with those rules.

  • FCA bans crypto derivatives
    Cryptocurrencies,  Regulation

    U.K. regulator shuts small investors out of crypto derivatives

    The Financial Conduct Authority prohibited the sale of cryptocurrency derivatives to retail customers, starting today, to protect consumers

    The regulator explained that the reason it believes that to be true is that the cryptocurrencies underlying such derivatives “have no reliable basis for valuation.” Beyond that, the presence of financial crime and market abuse in the crypto secondary market also makes reliable information hard to get. The FCA also cited the extreme volatility in cryptoasset valuation and the inadequate understanding of crypto by retail investors.