Leading figures in the cryptocurrency industry have strongly criticized the UK’s Financial Conduct Authority (FCA) over its continued ban on crypto derivatives, arguing that the policy is doing more harm than good for retail investors.
According to a Financial News report, Joshua Barraclough, CEO of crypto exchange One Trading and a former JPMorgan executive, labelled the ban as “terrible” and harmful to consumers. He stated that investors should have the right to make their own informed decisions, even if those decisions carry risk.
The FCA first introduced the ban in 2020, citing concerns over the complexity and volatility of crypto derivatives. However, the executives believe the regulatory stance is outdated, particularly in light of new consumer protection measures.
Carly Nuzbach Lowery, founder of crypto regulatory firm Gateway 21, argued that with the introduction of financial promotions rules in October 2023 and product-specific appropriateness assessments in January 2024, the outright ban now appears “blunt and unnecessary.”
Konstantinos Adamos, legal counsel for crypto at Revolut, acknowledged the FCA’s concerns but maintained that retail investors should be trusted to make their own investment choices.
The UK’s restrictive regulatory stance has already led some crypto firms to withdraw from the market. Bybit, one of the industry’s major trading platforms, suspended operations in the UK in 2023 due to the FCA’s tough approach. Since 2020, the FCA has received 368 crypto registration applications, yet only 14% have been approved.
“Across the board, the UK has been taking a ‘wait and see’ approach on crypto regulation,”
Lowery noted, suggesting that while this strategy allows the country to observe the impact of regulations in other jurisdictions, it also risks the UK falling behind. Barraclough echoed this concern, stating,
“We deliberately didn’t set up in the UK—I think the UK’s been terrible.”
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