FCA and Treasury consider crypto-derivatives ban
Cryptoassests Taskforce, a joint investigation led by the Financial Conduct Authority (FCA), the Bank of England and the Treasury, has announced measures could be taken to “mitigate the risks” posed by digital currencies to consumers.
A “potential prohibition” of cryptocurrency-based derivatives was mentioned as the group posted its findings on 30 October.
The investigation concluded that the trio will guard against future threats to financial stability and that the FCA will “hold consultations” to protect consumers from risks posed by digital assets.
In its findings, the taskforce admitted distributed ledger technology (DLT) has the potential to deliver significant benefits in financial services and other sectors, and that it would receive continued support.
However, the report also stated exchange tokens “present new challenges to traditional forms of financial regulation.”
A government consultation in early 2019 is expected to further explore the processes behind the tokens and which regulatory tools are most effective to deal with them.
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