Crypto Derivatives Could Be Prohibited By The Start Of 2019 In The United Kingdom

The risk of banning crypto derivatives such as contracts and futures is in the cryptocurrency news today since they are facing prohibition in the near future in the United Kingdom.

The Financial Conduct Authority issued a statement that the ban will be further explored in the first quarter of 2019 by saying:

 “A separate consultation by Q1 2019 on a potential prohibition of the sale to retail consumers of derivatives (including contracts for differences, options, and futures) referencing certain types of crypto assets…”

The consultations will be led by multiple government bodies such as the UK Cryptoasset Taskforce, The Bank of England and the Majesty’s Treasury.

This comes to no surprise since the FCA noted that crypto assets present a risk to business and consumers so they will likely take actions that will protect all of the users. The Cryptoasset Taskforce is trying to determine how the existing regulations can be expanded so they can include all of the crypto assets that are now outside of the regulatory outskirts.

Also, the Cryptoasset Taskforce committed to implementing a comprehensive response about using cryptocurrencies in activities related to Anti-Money Laundering and building such bodies in the European Union.

This is a great time for the Taskforce to pursue all of the above-said actions since the United Kingdom is in a phase where they are pushing for crypto regulations. Just two months ago, British lawmakers named the crypto market as the ‘’Wild West’’ because investors claimed to be inadequately protected.

The chairperson of the Treasury Committee in the UK parliament Nick Morgan said at that time:

 “Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets. This unregulated industry leaves investors facing numerous risks.’’