The World Federation of Exchanges urges the UK's Financial Conduct Authority not to prohibit the sale of cryptocurrency derivatives to retail customers.
The World Federation of Exchanges is the global trade association for regulated exchanges and clearing houses representing over 250 firms across the world, including the Chicago Mercantile Exchange Group and the Intercontinental Exchange.
On behalf of its associates, the Federation responded to the Financial Conduct Authority's proposal to ban the sale of crypto derivatives and exchange-traded notes to all retail consumers.
"It would be optimal to avoid an outright ban and to implement ways of mitigating for the lack of consumer protections."
The Federation believes that the cryptocurrency space is at the very beginning of what could turn into a prosperous industry.
Due to the increasing interest among investors, the WFE plans to advocate in favor of cryptocurrency derivatives if the FCA approves the proposed ban.
"Should a ban be implemented, we would call for the inclusion of a review, within the regulation, to take place after a set period of time. We would also advocate for the flexibility to 'switch off' any ban, efficiently, to enable the trading of such products on fully regulated, established exchanges in the future."
A study by Bitwise Asset Management concluded earlier this year that nearly 95 percent of all reported trading volume in Bitcoin is faked by unregulated exchanges.
WFE maintains that fully regulated exchanges and CCP operators can significantly reduce the risk for retail investors participating in these markets.
According to Nandini Sukumar, CEO at WFE, instead of a ban, regulation is what will help this industry flourish.
Exchanges respond to UK's proposed ban on cryptocurrency derivatives
Publicado en Oct 9, 2019
by Cryptoslate | Publicado en Coinage
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