The Financial Conduct Authority (FCA) in the UK will decide the legality of offering cryptocurrency derivatives in the United Kingdom. This decision will come following the government’s stance that the regulator should decide if a ban should be placed on such financial products.
The UK Treasury has responded to questions about the approach of the UK towards cryptocurrencies and crypto-assets, mentioning the UK FCA’s current consideration of the crypto derivatives ban. Mr. Glen emphasized that the FCA is operationally independent from the government and it is the only entity that needs to decide the fate of the crypto product.
Up until now, the FCA has received multiple complaints about the sale of crypto derivatives in the UK. Once these complaints were in, the FCA launched the consultation procedure. It is unfortunate however, that possible financial scams are having an influence on the consideration of the proposed ban. Currently, in the United States, Bitcoin derivatives and other crypto pegged pairs are available for trading with brokers such as FOREX.com.