U.K government says the FCA will make the final decision on crypto derivatives ban

The UK government says the FCA will have the final say on crypto derivatives in the UK. They add it will be the Financial Conduct Authority (FCA) who will decide as it operates independently from the government.

The government of the United Kingdom who are currently dealing with the Brexit mess have stressed that it is the duty of regulators, not the executive, to decide whether to continue with a proposed ban on certain crypto derivatives for retail investors.

On Monday the Economic Secretary to the Treasury John Glen responded to a series of questions related to the U.K.’s approach to crypto-assets, including the U.K. Financial Conduct Authority’s ongoing consideration of the ban.

Glen said “The final decision […] is a matter for the FCA, which is operationally independent from government.”

The FCA wants to enact a blanket ban on selling crypto derivatives such as contracts for difference (CFDs) and Exchange Traded Notes (ETNs). 

“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.” added Glen.

The U.K. watchdog has noted that at the time that retail investors would save between £267 million and £451 million per year. A massive sum of money they were said to have lost in trading crypto derivatives. There has been no set time on the decision and traders in the UK lie in wait for the decision.