In today's crypto report from Fanatortech, the UK Finical Conduct Authority (FCA) has proposed banning financial instruments related to digital currencies such as Bitcoin, Ethrum, and so on.
The FCA warns that individual investors may not have full knowledge of the risks or values of this tool and as such, can cause substantial losses. Therefore, this report is in accordance with "Guardian."
The FCA claims that derivatives such as exchange-denominated bonds (ETN) associated with encrypted assets are "not suitable" for small investors. These products are "very volatile" and difficult to assess.
The FCA further added that their investors have a low understanding of the product and there is an increased risk of financial crime that will harm investors because of "sudden and unexpected losses."
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The FCA also said that if these financial instruments were banned, it was expected to save consumers from a loss of 75 million to 234.3 million pounds a year.
If implemented, this ban will affect financial products such as CFDs, options, futures and ETNs.
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