FCA is free to decide whether cryptocurrency derivatives should be banned

The UK Financial Conduct Authority (FCA) is entitled to regulate the cryptocurrency industry and introduce bans on cryptocurrency derivatives if it finds it necessary, according to John Glen, Economic Secretary to the UK Treasury. 

While answering a series of questions related to digital assets, the official highlighted the independence of FCA and its authority to make decisions on cryptocurrency-based investment products and their availability for retails traders.

“The Financial Conduct Authority (FCA) made a commitment to consult on the potential prohibition of the sale to retail consumers of derivatives referencing certain types of cryptoassets in the final report of the Cryptoasset Taskforce, comprised of HM Treasury, the Bank of England and the Financial Conduct Authority, in October 2018. The final decision on this consultation is a matter for the Financial Conduct Authority (FCA), which is operationally independent of government," he said as cited by the FinanceFeeds.

He also added that the government had launched the Cryptoasset Taskforce, and initiated a seriec of consultations about the approach to crypto-based products and the requirements for companies that operated in the industry.

"The government continues to endorse the approach set out in that the Cryptoasset Taskforce report as the right way to facilitate innovation while protecting consumers and firms,” he added.