UK FCA Bans Crypto-Derivatives for Retail Consumers
The United Kingdom Financial Conduct Authority's ban on the sale, marketing and distribution of cryptoasset derivatives and exchange-traded notes to retail consumers took effect on January 6, 2021. The FCA had adopted the final rule in October 2020, so the 2021 event is the effective-date stage rather than the policy's original announcement.
The United Kingdom Financial Conduct Authority's ban on the sale, marketing and distribution of cryptoasset derivatives and exchange-traded notes to retail consumers took effect on January 6, 2021. The FCA had adopted the final rule in October 2020, so the 2021 event is the effective-date stage rather than the policy's original announcement.
The rule covered derivatives referencing unregulated transferable cryptoassets, including Bitcoin, while leaving direct retail ownership of Bitcoin outside the ban. It became an early example of a major regulator distinguishing direct access to Bitcoin from leveraged or packaged products tied to its price.