The World Federation of Exchanges (WFE) has reached out to the United Kingdom’s Finacial Conduct Authority (FCA)in an official statement. The WFE has asked the FCA to reconsider imposing a ban on the sale of crypto derivatives to retail investors.
WFE reaches out to FCA
The FCA had previously elucidated its plans about banning the sale of cryptocurrency derivatives such as futures. The regulator has already requested businesses in the country to advise the agency about effective solutions that would enable it to protect customer funds. The watchdog’s main concern is that derivatives expose amateur retail investors to greater loss by the volatile price movement of cryptocurrency.
Now the WFE has requested the agency to reconsider its stance towards digital currency financial instruments. The WFE has shown appreciation of the agency’s concerns towards customer security. The WFE wants to support the agency’s vision to integrate better protection measures for amateur investors.
The WFE has offered to assist the FCA in finding a balance for customer security while ensuring an encouraging environment for innovative technologies in the markets. The WFE has acknowledged the volatility as identified by FCA and supports the agency in ensuring proper customer protection policies are established.
WFE has made some suggestions to the watchdog for interacting with cryptocurrency derivatives. The global body has requested the agency to reassess the underlying principles behind these products. WFE urges that regulated exchanges have vastly reduced the risk to investors.
The WFE concluded that the market should not be banned but rather regulated. Moreover, it stated that customers have enough options in the market if they decide to participate in such markets.