The UK bans the sale of encryption derivations, expected to result in a potential loss of £53M annually.

robot
Abstract generation in progress

The UK's financial regulators have taken action to ban the sale of Crypto Assets derivatives to retail investors. This decision stems from concerns about the Crypto Assets market, including its severe price Fluctuation and associated risks.

Regulators believe that ordinary investors find it difficult to fully assess the potential risks of such investments, including factors such as project quality, safety threats, and the lack of a reliable valuation basis. This ban aims to protect individual investors from possible significant losses.

The new regulations will come into effect on January 6, 2021. Regulators expect that this measure could reduce potential losses for ordinary investors by approximately £53 million annually. It is worth noting that the impact of this ban is extensive, affecting not only Crypto Assets trading platforms but also related brokers, investment platforms, and financial advisors.

This regulatory measure reflects the ongoing concern of regulatory authorities regarding the risks of the Crypto Assets market, as well as their determination to protect the interests of ordinary investors. As the Crypto Assets industry continues to evolve, similar regulatory measures may emerge in other countries and regions to address the challenges posed by this emerging financial sector.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
NewDAOdreamervip
· 18h ago
The retail investors are still too much like suckers.
View OriginalReply0
DeFiVeteranvip
· 08-12 17:39
Regulation is ultimately short-sighted.
View OriginalReply0
CryptoNomicsvip
· 08-11 05:56
Typical regulatory myopia. My regression analysis suggests they're misattributing market volatility. Real loss prevention requires understanding stochastic processes, not blanket bans.
Reply0
GateUser-00be86fcvip
· 08-11 05:48
Wanting to be a nanny is too much.
View OriginalReply0
BearMarketBarbervip
· 08-11 05:46
Regulatory representatives progress
View OriginalReply0
MeaninglessGweivip
· 08-11 05:35
The bull run is coming again.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)