Top Exchanges Urge UK Regulator Not to Ban Cryptocurrency Derivatives

Some of the world’s top exchanges, including the CME, Nasdaq, and the Intercontinental Exchange, has asked the UK’s markets watchdog, the Financial Conduct Authority (FCA) not to ban cryptocurrency derivatives for retail investors.

Via an announcement published Monday the World Federation of Exchange (WFE) urged the FCA not to ban cryptocurrency derivatives as it needs to find a balance between enabling innovative products to be traded on the market and ensuring these are safely traded by regulated providers.

The WFE’s CEO Nandini Sukumar was quoted as saying:

We ask that authorities, including the FCA, chart the right regulatory course to allow the market to flourish and benefit its consumers even as we understand that it’s a balancing act.

The WFE argues the exchanges are well-equipped to protect consumers trading on their platforms. As CryptoGlobe covered, the FCA proposed a ban on cryptocurrency derivatives and exchange-traded notes to retail investors in July of this year, noting these products weren’t suited for these investors because of their “extreme volatility.”

While the WFE said it recognized their volatility and supports “ensuring that proper consumer protection is in place,” but it argues banning cryptocurrency derivatives isn’t the right move. The FCA is set to announced final rule changes next year, and if it goes ahead with a ban the WFE has called for a review after some time.