Speaking at the crypto regulation event that took place in London, FCA U.K. senior executive and director of strategy, Christopher Woolard, reveals that the financial watchdog may ban some cryptocurrency-based derivative.
Reason being that
retailers are being sold complex, volatile and often leveraged derivatives products based on cryptocurrencies with underlying market integrity issues.
he also added that
The FCA will consult on a prohibition of the sale to retail consumers of derivatives referencing certain types of crypto assets (for example, exchange tokens), including contracts-for-difference, options, futures and transferable securities.
The senior executive to U.K. FCA spoke more on the pressing issue at hand during event, the requirements of the fifth EU Anti-Money Laundering Directive (5AMLD). His speech below:
On this, [the Treasury] will first consult and then legislate on how to transpose 5AMLD and broaden the scope of anti-money laundering and counter-terrorism financing regulation further.
He also acknowledged and agreed to the fact that cryptocurrencies has brought challenges to traditional financial institutions out there before stating the plans laid down by the financial watchdog agency so as to keep the risk this new technology poses on a low.