The World Federation of Exchanges (WFE), which includes the Chicago Mercantile Exchange (CME) and the Nasdaq American Exchange, has called on the UK regulator not to ban cryptocurrency derivatives.
According to WFE, the UK Financial Supervisory Authority (FCA) needs to strike a balance between innovative products available for trading in the country and make sure that they are traded through regulated suppliers.
“We ask that the authorities, including the FCA, choose the right regulatory course, which will allow the market to develop and give consumers benefits. Of course, we understand that the most important thing is to find a balance, ”said WFE CEO Nandini Sukumar.
At the same time, WFE representatives note that although the cryptocurrency and derivatives market is really very volatile, this is not a reason to completely ban such products.
The fact that the UK regulator plans to ban cryptocurrency derivatives became known back in July. According to FCA, such products are not suitable for retail investors, are too volatile and lead to losses from investors.
The final decision to ban cryptocurrency derivatives is expected to be made in the 1st quarter of next year.