The United Kingdom is on its way to regulate cryptocurrencies in any way, and now England’s leading state financial regulatory body, the famous Financial Conduct Authority (FCA), is debating a general ban on cryptocurrency derivatives that have both gained traction in other economies for both private and institutional investors. If this prohibition is approved, the regulation would take effect by 2020.
The crypto ecosystem has always had to face this type of uncertainty in their actions both by the financial world tradition, and by regulators.
The crypto-regulatory relationship in the United Kingdom is characterized by being little recipient of the benefits that active crypto could bring because they see them, mostly, as a vehicle that drives illegal acts and capital outflow from England, let’s keep this last point in the head for a bit.
The year is about to end and the FCA will publish its annual closing report which includes the closing of the cryptocurrency market in its territory.
According to local media that have contacts within the FCA, this report will determine whether both crypto derivatives and cryptocurrencies such as Bitcoin (BTC) and Litecoin (LTC) should be banned, after a recent consultation period, where the regulatory institution asked all economic agents to send their comments about cryptocurrencies and crypto derivatives.
The possible decision of the regulator comes immediately after a statement issued in early July by the FCA where a ban on the crypto derivatives proposed by the Financial Conduct Authority (FCA) was proposed.
The agency declared:
“These assets are very high risk in which private consumers can suffer considerable damage to their assets due to sudden and unexpected losses.”
This drastic step of the FCA is likely to leave a negative impact on the growth of cryptocurrencies in the United Kingdom. However, nothing confirmed has been decided so far.
According to the current proposal of the Financial Conduct Authority, it aims to make any commercial vehicle related to Bitcoin, apart from the BTC, illegal in the United Kingdom. The general ban on crypto derivatives sold to retail merchants is probably the movement that regulatory bodies will take at the end of this year.