FCA bans sale of crypto-derivatives to retail investors

Ban to save consumers £53m per year

Mike Sheen
clock • 1 min read

The Financial Conduct Authority (FCA) has banned the retail sale of crypto-derivatives, amid concerns about valuations, volatility and the prevalence of financial crime in the market.

Following a period of consultation the regulator determined that unregulated transferable cryptoassets of this kind have no inherent value and are poorly understood by retail investors, who have no "legitimate investment need" to access the products. In July last year, the regulator began consulting on the ban and saw an overwhelming 97% of respondents oppose its proposals.  FCA eyes retail ban on crypto-derivatives At the time it began consulting, the regulator estimated that the ban would save consumers up to £234m per year. It has since re-evaluated that figure to £53m. Crypto...

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