FCA measures include banning the sale, marketing and distribution of any derivatives and exchange traded notes with linkage to unregulated cryptoassets, citing \u201cinherent nature of the underlying assets, which means they have no reliable basis for valuation\u201d to justify them.<\/p>\n
According to Sheldon Mills, interim Executive Director of Strategy and Competition at the FCA, this ban \u201creflects how seriously we view the potential harm to retail consumers in these products. Consumer protection is paramount here.\u201d<\/p>\n
This \u201cblow to the crypto world\u201d, as Laith Khalaf of AJ Bell had it when inquired by the CITY A.M., was further explained by the FCA by extreme volatility in the cryptoassets market, the widespread financial crime in the secondary market and \u201cinadequate understanding of cryptoassets by retail consumers\u201d, so the regulator\u2019s intention is to prevent retail customers\u2019 sudden and unexpected losses.<\/p>\n
Laith Khalaf elaborated further: \u201cThat\u2019s perhaps to be expected, given those most likely to share their views were providers of crypto products with more than a little skin in the game.<\/p>\n
\u201cOn balance, given how new these markets are, how instinctively appealing they can be to the younger generation and the potential for fraudsters and cowboys to muscle in on the act, it\u2019s understandable the FCA wants to play it cautiously.<\/p>\n
\u201cCrypto fans will no doubt point to the huge financial distortions that have occurred in bond and currency markets as a result of quantitative easing, and question why cryptocurrency is being carved out for specialist treatment.<\/p>\n
The measures will come into effect starting 6 January, 2021 and are estimated to save retail consumers circa \u00a353 million.<\/p>","protected":false},"excerpt":{"rendered":"
FCA measures include banning the sale, marketing and distribution of any derivatives and exchange traded notes with linkage to unregulated cryptoassets, citing \u201cinherent nature of the underlying assets, which means they have no reliable basis for valuation\u201d to justify them. According to Sheldon Mills, interim Executive Director of Strategy and Competition at the FCA, this […]<\/p>","protected":false},"author":29,"featured_media":53411,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false},"categories":[55],"tags":[166,163,165,68,90],"_links":{"self":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/posts\/53410"}],"collection":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/comments?post=53410"}],"version-history":[{"count":0,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/posts\/53410\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/media\/53411"}],"wp:attachment":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/media?parent=53410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/categories?post=53410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/tags?post=53410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}