The World Federation of Exchanges (WFE), the global trade association of publicly regulated exchanges, has called on the Financial Conduct Authority (FCA) not to restrict the use of currency derivatives for retail investors.
The WFE made a statement on 7 October in response to the Financial Supervisory Authority's consultation paper on a potential ban on cryptographic derivatives such as BTC (Bitcoin) and other cryptographic trading products, initially announced in July. The WFE proposed that the FCA should instead develop adequate consumer protection.
The WFE proposed a number of recommendations, such as the implementation of standards, the consideration of basic market structures and a review of the ban, if any, to ensure consumer choice and access.
While the FCA is still considering restricting the use of cryptographic derivatives for retail investors, it recently concluded that the main cryptographic currencies are "exchange-tokens", which are "usually decentralised and used mainly as a means of exchange".
The regulator stressed that such digital currencies do not fall within the regulatory scope of the FCA and its regulatory powers.
