World Federation of Exchange (WFE) asks Financial Conduct Authority (FCA) not to ban crypto derivatives to retail investors in a blog post published on October 7.
According to the post, the FCA wanted measures on how to protect investors and in its response the WFE offered to help find the right balance between enabling innovative products to be traded in the UK, and ensuring that they are sold responsibly, by fully regulated providers.
The WFE outline some recommendations to provide pre- and post-trade risk management standards that are designed to foster safe and efficient markets.
Nandini Sukumar, Chief Executive Officer, WFE said: “Consumer protection must be foremost when seeking to regulate new and innovative products. While crypto asset products have real potential, the market has suffered from unregulated providers distributing inappropriate products.
We ask that authorities, including the FCA, chart the right regulatory course to allow the market to flourish and benefit its consumers even as we understand that it’s a balancing act.” He concluded