UK’s Financial Watchdog Restricts Sale of Cryptocurrency Derivatives

United Kingdom’s financial watchdog the Financial Conduct Authority (FCA) has banned the sale to retail consumers of derivatives and exchange-traded index bonds (ETNs), which are based on certain types of cryptocurrency assets.

“FCA believes that these products are not suitable for retail consumers because of the damage they bring with them,” the FCA official report says. The prohibition would save £ 53 million ($ 68.6 million) a year.

FCA highlighted the inadequate understanding of crypto assets by retail consumers, the extreme volatility of the price dynamics for them, the difficulties with their reliable assessment, as well as the prevalence of financial crimes in the secondary market of crypto assets.