Bitcoin trading ban?
The Financial Conduct Authority (FCA) wants to stop retail customers from buying financial instruments that are tied to cryptocurrencies such as Bitcoin.
The value of cryptocurrencies can be extremely volatile, which could potentially leave traders who invest in derivatives of crypto currencies with significant losses.
Financial Conduct Authority
The FCA “considers these products ill-suited to retail consumers who cannot reliably assess the value and risks of derivatives or exchange traded notes (ETNs) that reference certain crypto-assets,” the regulator said in a statement.
Similar FCA rules introduced in August 2018 were finally fully implemented this week in an effort to protect retail traders from the use of CFD’s (contract for difference) and other spread betting products.