e_abrams Posted January 9, 2021 #1 Posted January 9, 2021 The United Kingdom crypto CFD ban came in effect on January 6th, 2021. Since then all cryptocurrency derivatives are not accessible anymore to UK traders. The FCA implemented this ban back in October 2020. The reason was the immense volatility of these derivatives and the risk it poses for retail traders. Ripple’s recent spectacular crash is a good illustration of the FCA’s point – once the information about SEC’s lawsuit against Ripple Labs became public, the XRP token fell like a rock and depreciated with more than 60%, which was a pretty shocking turn of events. According to the FCA, by banning such CFDs the retail traders in the UK will save up some 70 million GBP. Source: https://www.forexbrokerz.com/news/fca-uk-crypto-cfd-ban-in-ffect I don't like that sort of nanny approach from regulators. People who want to trade CFDs or something of the sort will find a way at any given time, banning them just makes it even less safe.
e_abrams Posted January 9, 2021 Author #3 Posted January 9, 2021 Brexit, I think, may have had some effect, but the main reason was that people were losing a lot of money to crypto CFD trading. The media was blaring constantly how cryptos were rallying, which attracted the attention of many inexperienced newbies, most people don't really know how to use a crypto exchange and ended up trading the more easily available thing - the crypto CFDs, provided by forex brokers - and because they didn't know how to actually trade them, lost a whole lot of money. And the FCA banned them.
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