Crypto officials say the British ban on crypto derivatives is harming retail investors rather than protecting them.
The execution of Crypto is banging the UK’s Financial Conduct Authority on the ban on crypto derivatives, saying that it is causing more damage to retail investors than helping them. Joshua Baraklo, CEO of One Trading and a former JP Morgan Executive Officer Interview Financial news stated that “terrible” restrictions are “to harm consumers”, suggesting that people should be able to make their own investment options, even if they come with risk.
Revolt’s legal lawyer Constantinose Edmos shared similar views for Crypto. He said that while FCA’s concerns about the complexity and instability of Crypto derivatives are understood, retail investors should still be allowed to take decisions for themselves. Carly Nuzbach Lovi, founder of Gateway 21, believes that the ban is old, as it seems “blunt” and unnecessary.
The FCA first introduced a ban in 2020, later confirmed this in an update of March 2024. FCA’s difficult trend on Crypto has operated firms such as Crypto Exchange Bibit to suspend its operation in the United Kingdom. Of the 368 crypto registration applications received by FCA since 2020, only 14% have been approved so far.
Meanwhile, the FCA failed to remove all illegal crypto advertisements as almost half the flagged propaganda is still online. As Crypto.news reported earlier, between October 2023 and October 2024, FCA issued more than 1,700 alerts about illegal crypto advertisements, apps and websites. However, it was taken less than 55%.
