On Tuesday, the Financial Services Authority (FCA) imposed a ban on allowing retail traders access to crypt currency derivatives, including futures, options and exchange notes (ETN). CEO of CoinShares Townsend Lansing expressed disappointment with the decision of the regulator, noting that in certain cases it may increase the risks for ordinary consumers, rather than reduce them.
"We are extremely disappointed with the FCA's decision to include ETN without a shoulder in the ban," he said during a conversation with Cointelegraph. - We and other industry players cited a number of reasons why this ban is reckless and will not benefit retail investors. Unfortunately, the FCA has ignored our arguments.
Lansing expects the ban to have the opposite effect as it "will simply force British investors to switch to unregulated exchanges" which protect clients much less than regulated ETN suppliers.
CoinCorner CEO Danny Scott noted that the FCA is more supportive of cryptovoltaic assets than companies that "package them into products targeted at traditional traders that are not understood by ordinary people.
Lansing was not as optimistic: "The FCA made it clear during the initial consultations and in the publication of the regulatory project: they don't believe that digital assets such as Bitcoin have value and therefore believe they are unsuitable for investment at a fundamental level.