{"id":564113,"date":"2020-10-06T15:44:43","date_gmt":"2020-10-06T12:44:43","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=564113"},"modified":"2020-10-06T15:44:43","modified_gmt":"2020-10-06T12:44:43","slug":"bitcoin-btc-holds-10600-as-the-uks-fca-bans-crypto-derivatives","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/bitcoin-btc-holds-10600-as-the-uks-fca-bans-crypto-derivatives\/","title":{"rendered":"Bitcoin (BTC) Holds $10,600 as the UK&#8217;s FCA bans Crypto Derivatives"},"content":{"rendered":"<p><strong>In summary:<\/strong><\/p>\n<ul>\n<li><strong>The FCA has banned crypto derivatives and exchange-traded notes (ETN) for retail customers<\/strong><\/li>\n<li><strong>According to the FCA, the move is aimed at protecting retail investors\u00a0<\/strong><\/li>\n<li><strong>The ban comes into effect 6th January 2021<\/strong><\/li>\n<li><strong>Bitcoin and the crypto-verse were briefly rattled by the news but BTC has continued to hold the $10,660 price area<\/strong><\/li>\n<\/ul>\n<p>Another global regulatory body has tightened its grip on crypto derivatives trading. Earlier today, the UK&#8217;s Financial Conduct Authority (FCA) <a href=\"https:\/\/www.fca.org.uk\/news\/press-releases\/fca-bans-sale-crypto-derivatives-retail-consumers\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">announced that<\/a> it has banned the sale of crypto-derivatives and exchange-traded notes (ETNs) to retail consumers.<\/p>\n<p>According to the FCA, such products are &#8216;ill-suited for retail consumers due to the harm they pose&#8217;. The announcement by the FCA goes on to explain that consumers cannot reliably value them because of the following.<\/p>\n<blockquote><p>&#8211; inherent nature of the underlying assets, which means they have no reliable basis for valuation<\/p><\/blockquote>\n<blockquote><p>&#8211; prevalence of market abuse and financial crime in the secondary market (eg cyber theft)<\/p><\/blockquote>\n<blockquote><p>&#8211; extreme volatility in cryptoasset price movements<\/p><\/blockquote>\n<blockquote><p>&#8211; inadequate understanding of cryptoassets by retail consumers<\/p><\/blockquote>\n<blockquote><p>&#8211; lack of legitimate investment need for retail consumers to invest in these products<\/p><\/blockquote>\n<h2>Ban Will Come into Effect on 6th January 2021<\/h2>\n<p>The FCA went on to point out that retail consumers would save around \u00a353 Million ($68.66 Million) from the ban of these derivatives products. The announcement of the ban comes less than a week after the US CFTC and the DoJ <a href=\"https:\/\/en.ethereumworldnews.com\/the-bitmex-cftc-saga-threatens-btcs-impressive-65-day-run-above-10k\/\" target=\"_blank\" rel=\"noopener noreferrer\">charged Bitmex<\/a> with illegally operating a derivatives exchange and violating the Bank Secrecy Act.<\/p>\n<p>Regarding a timeline for the implementation of the ban, the UK&#8217;s FCA provided January 6th, 2021, as the date when implementation will begin.<\/p>\n<h2>Bitcoin Holds $10,600 Amidst News of the Ban<\/h2>\n<p>When news broke of the FCA banning crypto derivatives trading for UK&#8217;s retail traders, <a href=\"https:\/\/en.ethereumworldnews.com\/bitcoin-is-in-a-bull-market-capitulation-was-last-yr-at-3k-analyst\/\" target=\"_blank\" rel=\"noopener noreferrer\">the price of Bitcoin<\/a> fell approximately $100 from $10,750 levels to $10,650. The King of Crypto is currently trading at $10,700 &#8211; Binance Rate &#8211; and continues to trade above <a href=\"https:\/\/en.ethereumworldnews.com\/bitcoin-btc-rests-on-the-100-day-ma-on-trumps-positive-covid19-test\/\" target=\"_blank\" rel=\"noopener noreferrer\">the 100-day moving average<\/a>.<\/p>\n<p>With the US CFTC and the UK&#8217;s FCA setting the pace on regulating and\/or banning crypto derivatives and trading platforms, it can loosely be concluded that other countries will in the near future, also provide similar recommendations regarding the same.<\/p>\n<p>Additionally, such measures mean that these global regulatory bodies do not want to ban digital assets completely, but would rather regulate them <a href=\"https:\/\/en.ethereumworldnews.com\/ripple-ceo-u-s-regulators-need-to-lean-into-digital-currencies\/\" target=\"_blank\" rel=\"noopener noreferrer\">as the future of investing evolves<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In summary: The FCA has banned crypto derivatives and exchange-traded notes (ETN) for retail customers According to the FCA, the move is aimed at protecting retail investors\u00a0 The ban comes into effect 6th January 2021 Bitcoin and the crypto-verse were briefly rattled by the news but BTC has continued to hold the $10,660 price area Another global regulatory body has tightened its grip on crypto derivatives trading. Earlier today, the UK&#8217;s Financial Conduct Authority (FCA) announced that it has banned [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":563552,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[800],"tags":[1233,108178,7004],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/564113"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=564113"}],"version-history":[{"count":0,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/564113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/563552"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=564113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=564113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=564113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}