The measure would help retailers to avoid all risk of loss and preserve their capital. In addition, the FCA assured that the amendment to the laws could be announced during the first months of 2020.
Last Monday, October 7th, a group of exchange houses that operate in the United Kingdom urged the authorities of that region not to prohibit the purchase and sale of virtual currencies derivatives, such as Bitcoin and other cryptocurrencies. In this way, they claim that they are prepared to respond and protect the users of these platforms.
The crypto market has become a lucrative activity in different countries of the world, so there are many consumers who come to these exchange houses in order to buy and use these assets to invest in the current changes of the market. They see this activity as a simple and different method of saving money.
As a counterpart to this request, last July, the Financial Conduct Authority of Great Britain (FCA) reported that these cryptocurrency derivatives affect consumers so they are not the most suitable for retailers, according to what the public note explains. This is due that there is no a reliable way to determine their value. This means that the volatility of these assets represents a strong risk for British users, the company considers.
In fact, the document published by the FCA states that it is more convenient to directly ban the sale of these assets to retailers, in order to avoid problems of capital losses in the future. It is known that this decision will mobilize a set of laws that will modify the current economic statutes by the first half of the year 2020.
On the other hand, the World Federation of Exchanges (WFE) recognized that innovation is important in British markets, but nevertheless it indicates that there must be a correct balance between the security and protection of citizens and the inclusion of new alternative technologies in the current economy.
“The WFE recognizes the volatility identified by the FCA in its consultation report and is supportive of ensuring that proper consumer protection is put in place as a priority for any new and relatively untested product on the market”, the organization said recently.
In addition, it is known that compensation exchanges are controlled and regulated in some countries to reduce the risk of all those involved in negotiations with cryptocurrencies.
After this measure, the WFE said that if the prohibition of these assets continues, it will request a reconsideration of the subject, every certain period of time. About this aspect, the institution expressed: “This review is also designed to avoid international market fragmentation, particularly if international standard setters introduce a new global regulatory approach to the regulation of crypto assets”.
With the aim to analyze the market, the FCA said that retailers could benefit greatly if the sums in the market are handled between USD 92 million and USD 289 million to prevent investment losses from the possible ban.
By María Rodríguez
