The World Federation of Exchanges (WFE), which has over 70 members, including giants such as the Chicago Mercantile Exchange (CME), the US Nasdaq exchange, and the Intercontinental Exchange (ICE), urged the UK financial regulator not to ban cryptocurrency derivatives.
Ban on cryptocurrency derivatives
According to WFE, the UK Financial Conduct Authority (FCA) needs to strike a balance between innovative products available for tradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details in the country and make sure that they are traded through regulated suppliers.
WFE CEO Nandini Sukumar emphasized:
“We ask the authorities, including the FCA, to choose the right regulatory course that will allow the market to develop and give consumers benefits. Of course, we understand that the most important thing is to find a balance.”
The FCA proposed banning the sale of cryptocurrency derivatives and exchange-traded bonds to retail investors in July, stating that these products are “not suitable” for retail consumers because of their “extreme volatilityVolatility
– is a financial term that means a statistical indicator of price change. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trade risk and as a financial analytical tool for gambling. Details.”
In response, the WFE stated that it recognizes the existence of volatility, but considers the FCA's direct prohibition as an inapt move.
The British Financial Conduct Authority, FCA, insists on a complete ban on Bitcoin production in the name of protecting consumer rights. Despite the fact that many users noted that the risks of cryptocurrencies are the same as those of other assets, the FCA continues to implement the ban. According to the report, the management is taking steps against cryptocurrency companies.