Britain is reportedly considering banning the sale of derivatives involved with cryptocurrency assets, such as bitcoin.
Reuters is reporting that worldwide crypto exchanges are asking the country’s market watchdogs to refrain from the ban, and are claiming they are well-prepared to protect customers who choose to trade crypto.
Many customers believe that certain crypto-related products could offer lucrative business opportunities for those willing to purchase them.
In July, Britain’s Financial Conduct Authority (FCA) said the derivatives were not good for customers who lacked the ability to assess their risks or gauge their value.
The FCA is considering a ban that would go into effect at the beginning of 2020. However, the World Federation of Exchanges (WFE) said the FCA should try to find a balance between allowing the products to be traded and making sure the people buying and trading them are properly protected.
“The WFE recognizes the volatility identified by the FCA in its consultation report and is supportive of ensuring that proper consumer protection is put in place as a priority for any new and relatively untested product on the market,” the WFE said in a statement.
The WFE emphasized that all of its members – which include the London Stock Exchange and Deutsche Boerse – are fully regulated and that the risks associated with crypto-related derivatives are not significant. If a ban does go into effect, the WFE wants it to be reviewed after a certain timeframe.
“This review is also designed to avoid international market fragmentation, particularly if international standard setters introduce a new global regulatory approach to the regulation of crypto assets,” the WFE said.
The FCA said it could save customers a huge amount of money with the ban – between 75 million and 243.3 million pounds ($92 to $289 million).
