UK ban on selling crypto derivatives to retail investors takes effect on January 6

According to BlockBeats, a ban on the sale of crypto derivatives and exchange-traded notes (ETNs) in the UK will take effect on Wednesday, January 6, local time.

The ban, announced by the UK’s Financial Conduct Authority in October 2020 after a long and intense consultation process, prohibits the sale, marketing and distribution of contracts for differences (CFDs), options, futures and ETNs involving cryptocurrencies to retail investors.

The regulator believes this will prevent losses of around £53 million, but industry commentators fear it will lead consumers to turn to unregulated exchanges, or even offshore ones – and therefore outside the FCA’s jurisdiction.