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.
Nikhil Rathi, the new head of the U.K.'s FCA has gone forward with a ban on cryptocurrency derivatives for small investors (Photo: FCA)
