The UK’s Financial Conduct Authority (FCA) has said that the regulatory body will consult on a ban on the sale of cryptocurrency contracts-for-difference (CFDs) to retail investors.
Speaking at a conference in London yesterday, Christopher Woolard, the executive director of strategy and competition outlined some of the conclusions of the FCA’s Cryptoassets Taskforce which was established in March this year.
Woolard said the FCA intends to “undertake one of the most comprehensive responses globally to the use of cryptoassets for illicit activities.”
In his keynote speech, Woolard said: “We’re concerned that retail consumers are being sold complex, volatile and often leveraged derivatives products based on exchange tokens with underlying market integrity issues.”
He cautioned that some security tokens could be considered securities in their own right under the Markets in Financial Instruments Directive II (known as MiFID II).