A ban on the sale of crypto derivatives and exchange traded notes (ETNs) to consumers is being proposed by The Financial Authority (FCA) as these products may harm retail consumers with their quick price movement and unexpected losses if they invest in them. Reasons are:
The proposal is to ban the sale of, marketing and distribution to all retail consumers that refer to unregulated transfers of crypto assets by firms in or from the UK.
The FCA has estimated between £75 million to £234.3 million a year could be save by protecting retail consumers from these products.
Warnings have been issued by the FCA to alert consumers with the risks involved with direct and indirect crypto assets investments. The FCA has also confirmed it will act if it sees this type of product being sold to retail consumers.