The UK's financial regulator Financial Conduct Authority (FCA) is planning to publish a consultation paper on a potential ban on the sale to retail clients of derivatives and certain transferable securities that reference cryptoassets.
The document titled "Restricting contract for difference products sold to retail clients" sets margin requirements for retail clients according to which, a firm must require a retail client "to post margin to open a position of at least 50% of the value of the exposure" that the trade provides if the underlying asset is a cryptocurrency.
"Should we decide to proceed with a ban following that consultation, such rules would replace our final measures restricting how CFDs referencing cryptocurrencies are sold to retail clients," notes FCA's statement.
Earlier FCA issued a statement, according to which, British investors lost about $34 million as a result of forex and cryptocurrency scams between 2018 and 2019.
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