Altcoin News: WFE Asks the FCA Not to Ban the Sale of Crypto Derivatives

October 7, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The World Federation of Exchanges (WFE), which has over 70 members, including the CME Group, Nasdaq and Intercontinental Exchange (ICE), has called the UK regulator not to ban cryptocurrency derivatives for retail investors.

According to the WFE, the UK Financial Regulatory Authority (FCA) needs to strike a balance between allowing innovative products to bid on the local market and ensuring that they are sold responsibly by fully regulated companies.

“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,” said WFE CEO Nandini Sukumar.

In July, the FCA proposed banning the sale of cryptocurrency derivatives and exchange notes to retail investors, citing the fact that they are not suitable for this group of customers due to their extreme volatility.

The WFE recognizes the FCA’s arguments as valid but considers the total ban a wrong decision. According to the WFE, cryptocurrency assets are a “developing and growing” market, the participation of consumers in which will only increase over time. It is expected that the final decision on FCA crypto derivatives will be made early next year.

Author: Marko Vidrih