UK watchdog flags possible ban on some crypto-related trading

Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, February 14, 2018. REUTERS/Dado Ruvic/Illustration

LONDON (Reuters) – Britain’s markets watchdog said on Wednesday it would consult later in the year on a proposed ban on selling derivatives linked to certain types of crypto assets to retail customers.

The Financial Conduct Authority was setting out guidance on the cryptoasset activities that it regulates to help firms understand if they come under the regulatory net.

It will consult on the guidance, and said it would come forward with more proposals in the sector.

“Later this year the FCA will consult on banning the sale of derivatives linked to certain types of cryptoassets to retail investors. The Government is planning to consult on whether to expand the regulatory perimeter to include further cryptoassets activities,” the FCA said in a statement.

Reporting by Huw Jones, editing by Iain Withers

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