WFE urges FCA not to ban crypto derivatives and ETN for retail investors

UK regulator (FCA) recently proposed a ban on the sale of crypto derivatives and exchange-traded notes to all retail consumers. The reason for this proposed change is that retail consumers lose money by investing in the extremely volatile crypto market.

Replying to UK regulators, the World Federation of Exchanges has asked FCA not to ban the sale of crypto derivatives and exchange-traded notes to retail consumers. WFE supports the regulator’s desire to protect retail investors but instead of a ban suggests allowing crypto-assets trading for retail consumers in fully regulated exchanges.

Nandini Sukumar, Chief Executive Officer, WFE said: “Consumer protection must be foremost when seeking to regulate new and innovative products. We ask that authorities, including the FCA, chart the right regulatory course to allow the market to flourish and benefit its consumers even as we understand that it’s a balancing act.”

The final statement on the rule changes is expected to be finalized and released by Q1 2020.

About World Federation of Exchanges(WFE): WFE is the global industry group for exchanges and clearing houses around the world. Together the group seeks to create and agree best practices and standards for the industry. Members include such as CME Group, Nasdaq and ICE – Intercontinental Exchange.

About FCA: The Financial Conduct Authority is the conduct regulator for financial services firms and financial markets in the UK.