The ban on the sale of cryptocurrency derivatives and exchange-traded notes (ETNs) went into effect in the UK on Wednesday, January 6. It was approved by the FCA in October after lengthy consultations, banning the sale, marketing and distribution of CFDs, options, futures, and ETNs that refer to cryptocurrencies — for retail investors.
The regulator believes the move is preventive and will save about €353 million. However, crypto market experts have expressed concerns that the ban will lead consumers to unregulated exchanges or offshore. A number of analysts in the blockchain space believe the ban is a sign that the FCA does not know how to regulate the industry properly.
The impact of the restrictions will be felt by a range of firms, from specialized crypto asset managers like CoinShares, with over $1.5 billion in assets under management, to platforms and exchanges like eToro. Traditional investment companies such as Hargreaves Lansdown and the FTSE 100 investment company also suffered from the ban.
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