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The UK Financial Regulatory Authority, the Financial Conduct Authority (FCA), could ban cryptocurrency derivatives such as futures as part of its "most complete response" to industry, according to a published speech on November 20th.
In a speech at the "Regulation of Cryptocurrencies" event held in London on Tuesday, FCA strategy and competition executive director Christopher Woolard stated that the organization will consult about the prohibition of so-called cryptocurrency contracts for difference (CFD) ).
This, Woolard says, "probably" would also incorporate "options, futures and securities". The publication quoted Woolard as if to say:
"We are concerned that retail consumers sell complex, volatile and often leveraged derivative products based on exchange tokens with underlying market integrity issues."
The United Kingdom found itself in a regulatory dilemma about its slow response to the growing popularity of cryptocurrency and associated instruments, with various factions that have criticized the priorities and intentions of the FCA as they have emerged so far.
In Tuesday's speech, Woolard was outlining the results of a dedicated "Taskforce" that began making recommendations in March. The idea of a ban on encrypted derivatives emerged for the first time in October, as reported by Cointelegraph.
The group had delineated the cryptocurrencies into three types, Woolard noted, constituting "exchange tokens" such as Bitcoin (BTC), "security token" and "utility token".
Regarding the unauthorized use of tokens, Woolard has also announced plans to take on what he called "one of the most comprehensive worldwide responses to the use of cryptoassets for illicit activities".
A recent survey in the meantime has shown that the knowledge, ownership and awareness of Bitcoin among British consumers has significantly increased.
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