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UK watchdog bans Bitcoin-based products for retail investors By Reuters

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© Reuters. A small toy figure and representations of the virtual currency Bitcoin stand on a motherboard in this picture illustration

By Huw Jones

LONDON (Reuters) – Britain’s financial watchdog said on Tuesday it would ban the sale to retail investors of products tracking the price of cryptoassets like , arguing that most people lost money on them.

The Financial Conduct Authority (FCA) said there was no reliable basis for valuing cryptoassets that underpin derivatives and exchange-traded notes.

The ban, which prompted surprise and anger in the sector, will come into force on Jan. 6, 2021.

Shares in Plus500 (L:), IG (L:) and CMC (L:) fell by between 1% and 3.6% after the FCA published its statement on the ban.

“Many will think it is not necessary – there are already material leverage restrictions related to this form of trading and this appears quite ‘nanny state’,” lawyers at Ashurst said.

The watchdog had set out proposals for a ban in a public consultation last year, and said on Tuesday the move would save retail investors 53 million pounds ($69 million).

There is a prevalence of market abuse and financial crime, along with extreme volatility in prices, and lack of legitimate need to invest in such products, the FCA said.

“Significant price volatility, combined with the inherent difficulties of valuing cryptoassets reliably, places retail consumers at a high risk of suffering losses from trading crypto-derivatives,” said Sheldon Mills, interim executive director for strategy and competition at the FCA.

“We have evidence of this happening on a significant scale.”

Global Digital Finance, an industry body that promotes best practices and conduct standards in cryptoassets, said the “drastic” move singled out cryptoassets unfairly.

“This ban kills off what could have been a new investment opportunity for sophisticated retail investors. It also sends a negative signal regarding the UK’s stance on cryptoassets,” said Lawrence Wintermeyer, executive co-chair of Global Digital Finance.

The products were popular with young male investors in particular, the FCA said, noting that most respondents to its consultation had opposed a ban, arguing that cryptoassets have intrinsic value and some like Bitcoin are accepted by companies such as Starbucks (O:) and Microsoft (O:) as a form of payment.

“We remain of the view that the price of cryptoassets is determined by sentiment and speculative behaviour,” the FCA said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Cryptocurrency

Number of Bitcoin wallets holding over 100 BTC tests 6-month high By Cointelegraph

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Number of Bitcoin wallets holding over 100 BTC tests 6-month high

More than 16,159 wallets now hold 100+ BTC, according to analytics data provider Glassnode. A report Monday from the company stated that this figure tests the previous six-month high of 16,158, last seen on June 8.

Glassnode additionally shared that the number of non-zero Bitcoin addresses reached an all-time high of 31,913,3555 on Monday; approximately 5,000 of these were recorded within the past 24 hours.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Cryptocurrency

Will the dollar’s weakness result in Bitcoin finally breaking $12,000? By Cointelegraph

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Will the dollar’s weakness result in Bitcoin finally breaking $12,000?

Historically, a weaker United States Dollar leads to strength across other “safe haven” assets. By analyzing the correlation, such momentum and conclusion can also be drawn with (BTC) and the USD.

Bitcoin has gained in 2020 as the U.S. Dollar Currency Index (DXY) has been having a tough year. But will this momentum continue in the coming months? Let’s take a closer look at the charts.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Cryptocurrency

file storage and digital identity By Cointelegraph

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Neo Foundation teases surprising Neo3 features: file storage and digital identity

In an open letter today to Neo community members, the Neo Foundation reflected on the past four years of activity and teased their plans for the future: Neo3, the third iteration of their smart contract-enabled blockchain, which will sport file storage and D-ID (Digital or Decentralized Identity) features.

Neo, the 22nd largest cryptocurrency by marketcap, has enjoyed a strong year, having successfully launched a cross-chain interoperability product in collaboration with Ontology and Switcheo.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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