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.
CME Group launches bitcoin options contracts
The launch comes on the heels of rival exchange Bakkt’s launch of its own bitcoin options and cash-settled contracts in December
CME Group, one of the first regulated institutions to offer bitcoin futures, launched bitcoin options contracts today.