The United Kingdom’s financial watchdog the Financial Conduct Authority (FCA) conducted a survey one year before it imposed a ban on the sale of cryptocurrency derivatives for retail customers in the United Kingdom. 97 percent of the Survey’s total respondents opposed this decision of banning digital currency derivatives sales. This idea was proposed by the UK’s financial regulator in the survey but respondents opined against it.
Survey participants did not agree with the Crypto derivatives Ban idea
Last year in July 2019, the Financial Conduct Authority suggested in a survey to ban distribution and sales of Exchange Traded Notes (ETNs) and cryptocurrency derivatives to retail investors in the United Kingdom. To know about the opinions of people, the financial watchdog reached out to more than 500 firms, retail clients, national competent authorities, and trade bodies to ask them about their opinions regarding this proposed idea of banning cryptocurrency derivatives sale in the country for retail investors.
The findings of this survey were interesting as according to results there were 97 percent of participants who showed disagreement on this matter rejecting the idea of prohibiting sales of exchange-traded notes and digital currency derivatives in the country.
While sharing their view in response to the survey, most of the participants said that digital assets can be used for different purposes i.e. they can be used as a payment method for buying goods and paying for other services. Therefore, they have got intrinsic value. They called this prohibition disproportionate saying that retail customers can assess the risks involved in using digital currency derivatives.
Participants’ response could not make a difference
However, though 97 percent of participants did not favor this ban it could not make any difference as the Financial Conduct Authority has announced to impose a ban on the sale of cryptocurrency derivatives and ETNs while considering these products harmful for retail investors.
The ban on these products will come into effect next year starting from the 6th of January 2021. After that, retail customers in the United Kingdom would not be able to have access to these products.