The policy decision-makers in the United Kingdom got split on whether the sale, marketing, and distribution of derivatives and exchange-traded notes (ETNs) tied with cryptocurrencies should be prohibited when it comes to retail investors.
The Regulatory Policy Committee believes the measure, adopted in 2021, to be unjustified under current circumstances. The prohibition, enacted by the chief British regulator, the Financial Conduct Authority (FCA), came into force in January 2021.
Since that time, the companies could no longer offer cryptocurrency derivatives products such as futures, options and exchange-traded notes, or ETNs, to retail customers.Back at the time, the blanket ban ignored 97% of respondents to the FCA’s own consultation, who opposed the FCA proposed the “disproportionate” prohibition and argued that retail investors are capable of assessing the risks and the value of crypto derivatives.
On Jan. 23, 2023, the Regulatory Policy Committee (RPC), an advisory public body, sponsored by the government’s Department for Business, Energy and Industrial Strategy, laid out its reasons against the FCA’s prohibition. Related: UK crypto bill to restrict services from abroadUsing the cost-benefit analysis, the RPC evaluated an annual loss from the measure at roughly $333 million (268.5 million British pounds).Read more on cointelegraph.com