Cryptocurrency products banned in UK after year-long review

WION Web Team New Delhi, India Oct 07, 2020, 12.41 PM(IST)

BitCoin Photograph:( AFP )

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According to an estimate, the cryptocurrency market is worth around USD 337 billion. It was worth USD 200 billion just 2 years ago

Financial authority in the UK on Tuesday banned some cryptocurrency-based products in order to safeguard retail consumers. From next year, firms in UK will not be able to sell, market or distribute products that track prices of crypto-assets. This covers futures, options, exchange-traded notes and contracts-for-difference. Although analysts believe that the decision will not affect the actual sale of cryptocurrencies, the online trading platforms for cryptocurrencies like Bitcoin, Ripple and Ether among others are expected to get a hit.

UK's Financial Conduct Authority said that it has taken the decision to safeguard retail consumers as they are exposed to unexpected financial losses due to unregulated crypto-assets. Volatility and unreliable valuations add to retail consumers' woes.

The latest decision by the FCA came a year after it actually proposed such a ban. The authority took a review of the situation in its analysis that went on for a year.

Soon after the decision of the FCA, shares in the online trading platform fell by 2-3 per cent.

Cryptocurrencies have attracted a lot of interest from investors all around the globe in recent years. According to an estimate, the cryptocurrency market is worth around USD 337 billion. It was worth USD 200 billion just 2 years ago.