World Federation of Exchanges Ask UK’s FCA Regulators To Drop Crypto Derivatives Ban
The World Federation of Exchanges, an international group that works for the interests of crypto exchanges, has recently asked the United Kingdom regulators such as the Financial Conduct Authority (FCA) not to ban crypto derivatives from the country.
According to the federation, there is a need to “find a balance” between protecting the local customers and keeping innovation alive. Because of this, banning products is not the right course.
The official statement is that the organization recognized the existence of volatility as it was identified by the U. K. regulator, but it disagrees when it comes to the proposed blanket ban proposed by the regulator, which would take all crypto derivatives out of the market because they are
While the FCA seems to believe that customers cannot rely on the kind of asset which can see its prices fluctuating a lot, the opinion of the federation is that regulated exchanges are going to be directly affected by this in a negative because, so the institution is trying to achieve a middle ground.
These are companies that already have integrated the derivatives in their business, so they would have to radically change them.
The moment to discuss what is happening is now. The consultation for the ban was ended a few days ago and the final rule changes are expected to be released at the beginning of the next year. Because of this, the federation is moving to convince the regulators.