It seems that the crypto market does not stop taking hit after hit. Now, just a few days after the charges against BitMEX, the FCA has banned the sale of crypto derivatives to retail clients in the UK.
Crypto derivatives go extinct in the UK
Today it was announced by the FCA that crypto derivatives are “not suitable” for retail clients for multiple reasons. And, therefore, they have decided to prohibit its sale, thus preventing crypto companies in the country from offering their products.
The FCA notes that the absence of reliable values, volatility, lack of compression and other issues make these products unsuitable. Furthermore, they point out that there are no legitimate reasons for retail clients to invest in them.
In this sense, the ban will take effect on January 6, 2021. Apparently, the measure will save ‘Around GBP 53 million to retail consumers, presumably in business losses«.
CoinShares is one of the companies most affected by the decision mainly because it invested last year in a campaign to get the regulator to abandon its plans.
Without a doubt, it will be a strong blow to the crypto market and its companies that are located in the United Kingdom.
Bitcoin correlated to traditional markets?
Today the President of the United States has further delayed the economic stimulus package, and shortly after, Bitcoin has fallen back.
Specifically, Trump delayed the matter until after the 2020 presidential elections conclude. Not to mention that Trump has been very confident on social media that he will be victorious in the race.
As expected, traditional markets have taken a big step backwards; but the leading crypto also fell back. At time of writing, BTC is hovering above $ 10,500.
One million users in a month for MetaMask!
A press release was published today where it was revealed that the MetaMask crypto wallet reached one million monthly active users last month.
The reason behind the growth in the number of users is the boom in the DeFi sector during the year.
Crypto rules are urgent!
The Wall Street Journay revealed today that Brian Brooks, head of the US regulatory agency OCC in an interview at the LA Blockchain Summit, said he wanted to help provide regulatory clarity on crypto.
In this sense, he emphasized that “If there are wrong activities in cryptocurrencies, we have to get rid of them.”
In a few lines …
- The Bank of Canada published a note examining the security risks of a hypothetical CBDC.
- Ethereum’s hash rate has reached an all-time high of 250 terahashes per second, according to the crypto firm Glassnode.
- Keith McCullough, CEO of Hedgeye Risk Management, It seems who sold all his Bitcoins.
Related
