- FCA announces ban on crypto-based products trade
- It was amended to protect people from the unknown threats of the digital market
- Comments prevail that this ban has put a barrier to people choosing and trading correctly according to their desire
The United Kingdom government has converted the regulation imposed on stopping crypto exchange trades to a complete ban on these activities and investments. It earlier put some regulations in October and recently has promoted it to a complete ban.
WHY THIS BAN ON CRYPTO TRADE?
The UK government has taken this particular decision to ban the crypto trade from ensuring consumers’ safety. It feels that consumers might be exposed to a much problematic and threat involved environment which would give no value to their investments. Instead, they provide people with the option of purchasing regulated cryptos and not investing in specified investments.
Generally, this trade consists of crypto-based derivatives and ETN’s which form a basis from cryptocurrency and are dangerous to own without some regulations.
Sheldon mill says that this ban can help retail consumers avoid the risk of fraud, crypto volatility, and many other crypto-related issues.
COMMENTS OPPOSING THE BAN
Many industrialists and investors have raised their voice against the ban imposed on the trade of crypto assets. They said that the ban would push investors into a broad retail market, where nothing would be known or had proper knowledge. Some others say that the ban might affect nothing of digital asset trading but cause a lot of damage to UK investors. Data has shown that the assets after the increase in crypto investments have increased from €470 million to €2.3 billion over a year. Christopher Bendiksen says that volatility is inevitable because it must experience some ups and downs in its value for any asset to reach a higher value. Mr McNeil added that this process proposed by the FCA would take a lot of time to obtain the results that we expected.
Despite the higher annual gains of companies of over 100 to 300 per cent the annualized gains have been comparatively less and fall in the belt of just 10 -50 %. Even though the FCA had unusual results of its survey saying that people are aware of market risks and understand the concept of regulatory risk and management, it continued to impose the ban. So there is still a thought prevailing that people still have the freedom of choosing their investments because they are informed and have the option of choosing safely and investing in or purchasing things that reduce their risk and increase transparency.
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