Crypto executives say the British ban on crypto derivatives is hurting retail investors rather than protecting them.
Crypto execs are slamming the U.K.’s Financial Conduct Authority over its ban on crypto derivatives, saying it’s hurting retail investors more than helping them. Joshua Barraclough, CEO of One Trading and a former JPMorgan executive in an interview with Financial News said the “terrible” ban is “harming consumers,” suggesting that people should be able to make their own investment choices, even if they come with risks.
Konstantinos Adamos, Revolut’s legal counsel for crypto, shared similar views. He noted that while the FCA’s concerns about the complexity and volatility of crypto derivatives are understandable, retail investors should still be allowed to decide for themselves. Carly Nuzbach Lowery, founder of Gateway 21, believes that the ban is outdated, as it feels “blunt” and unnecessary.
The FCA first introduced the ban in 2020, reaffirming it later in a March 2024 update. FCA’s tough stance on crypto has driven firms like crypto exchange Bybit to suspend their operations in the United Kingdom. Only 14% of the 368 crypto registration applications received by the FCA since 2020 have been approved so far.
Meanwhile, the FCA failed to remove all illegal crypto ads as nearly half of flagged promotions still online. As crypto.news reported earlier, between October 2023 and October 2024, the FCA issued over 1,700 alerts about illegal crypto ads, apps, and websites. However, less than 55% were taken down.
