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 However, the executives believe the regulatory stance is outdated, particularly in light of new consumer protection measures.
Britain’s bans the sale of cryptocurrency derivatives, saying they have no value for ordinary investors https://t.co/HI68mdgtCW
— Bloomberg Crypto (@crypto) October 6, 2020
Industry experts speak against the ban
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.
Also Read: UK Government Releases Comprehensive Draft Legislation to Support Industry and Curb Fraud
UK Crypto Regulation Is Moving Beyond the Old Framework
In February 2026, legislation was introduced to bring a wider range of cryptoasset activities into the UK’s financial regulatory framework. The FCA subsequently published its final rules in June, completing major elements of its crypto regulatory roadmap.
The new regime is expected to come into force on October 25, 2027. Firms will need to obtain FCA authorisation for activities covered by the new rules, with the regulator preparing to open its authorisation gateway in September 2026.
The framework is designed to move crypto beyond the UK’s existing registration system, which has largely focused on anti-money-laundering and financial-crime requirements.
Under the incoming regime, crypto firms will face broader requirements covering areas such as consumer protection, governance, market integrity, operational resilience and financial resources.
The FCA has also established a regulatory framework for stablecoin issuance and cryptoasset custody, with further work planned as the use of stablecoins expands into payments and other financial services.
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