The FCA (Financial Conduct Authority) of the UK has planned prohibiting the sale of derivatives and ETNs (exchange traded notes). Referencing specific kinds of crypto assets last week in its proposal, the FCA claimed that it is seeking to deal with harm to retail users from their sale.
“The FCA believes these goods are ill-matched to retail users who can’t dependably evaluate the risks and value of ETNs or derivatives that reference specific crypto-derivatives (crypto assets),” the watchdog claimed.
As per the FCA, this is owing to the inherent property of the fundamental assets, which it claimed have no dependable basis for capitalization. It is concerned also by retail users’ inadequate knowing of crypto assets and the shortage of a clear investment requirement for spending products referencing them.
It also claimed that the occurrence of financial crime and market abuse in the crypto assets secondary market is of worry, same as the crypto asset prices movements’ extreme volatility. “These features indicate that retail users might suffer injury from unexpected and sudden losses if they spent in these goods,” the FCA claimed.
“The FCA is hence consulting on prohibiting the marketing, sale, and distribution to all retail users of all derivatives (deal for difference—options, CFDs, and futures) and ETNs that underline transferable unregulated crypto assets by companies acting from, or in, the UK.”
On a related note, it did not even take 2 Days after Facebook declared its cryptocurrency plan for the government to lift a doubt. Maxine Waters, Chairwoman for House Financial Services Committee, summoned Facebook to stop development, and now the committee has planned a hearing to cover both Calibra and Libra as well as privacy problems. The committee did not tell the names of witnesses it aims to call, but the media claimed that David Marcus, blockchain exec at Facebook, is expected to be present.
Owing to great linguistics and awesome skills on editorials; Jeffrey was chosen as the editor of our organization. In addition to publishing, he also writes profound articles on politics, business, and news. His terminologies and concepts regarding economics, finance, politics, and the marketplace are clear. He has been a key contributor to multiple business magazine. His love for coffee keeps him on at work.