Policymakers in the United Kingdom are divided on whether the sale, marketing, and distribution of derivatives and exchange-traded notes, tied with crypto, should be banned.
UK lawmakers are divided on whether to ban the sale, trading, and distribution of derivatives and exchange-traded notes (ETNs) linked to cryptocurrencies when it comes to retail investors. The Legislative Committee believes the measure, passed in 2021, is untenable in its current state.
Britain’s main regulator, the Financial Conduct Authority (FCA), imposed a ban in January 2021. Since then, companies may no longer offer cryptocurrency issued as futures, options, exchange-traded notes, or ETNs, retail sales. The insurance was banned despite 97% of respondents to the FCA’s advice opposing the ban being “unfair”, with many saying that retail investors were able to find out what risks and benefits of crypto products.
On Jan. 23, the Regulatory Policy Committee (RPC) – a public advisory body supported by the government’s Department for Business, Energy, and Innovation – released its case against the FCA ban.
Using a cost-benefit analysis, the RPC puts the annual loss at £268.5 million ($333 million). As the CPR says, the FCA does not provide a clear explanation of exactly what would happen in the absence of the ban. Or he did not explain the process and calculation for calculating the costs and benefits at that time. Based on this, the RPC classifies the ban as “red”, which means it is fit for purpose.
A negative review of the CPP does not necessarily lead to the immediate repeal of the law. However, given the committee’s links to the departments for business, energy, and industrial policy, it may mark a different understanding of the common sense principles between the FCA and the government.
Over the past year, UK financial services have made several major efforts to promote the development of the digital industry. For example, “designated crypto-assets” have entered the list of investment services eligible for the termination of the fund manager.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up