Crypto Executives Criticize UK Ban on Crypto Derivatives

Crypto executives are speaking out against the UK’s ban on crypto derivatives, stating that it is causing more harm than good for retail investors. The ban, introduced by the Financial Conduct Authority (FCA), has been met with criticism from industry leaders who believe it is overly restrictive and fails to protect investors as intended.

Concerns Over Investor Protection

Joshua Barraclough, CEO of One Trading and former JPMorgan executive, expressed his disapproval of the ban, calling it “terrible” and stating that it is “harming consumers.” Barraclough believes that individuals should be allowed to make their own investment choices, even if they come with risks.

“People should be able to make their own investment choices, even if they come with risks.”

This sentiment is echoed by Konstantinos Adamos, Revolut’s legal counsel for crypto, who notes 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.

Outdated Regulations

Carly Nuzbach Lowery, founder of Gateway 21, believes that the ban is outdated and feels “blunt” and unnecessary. The FCA first introduced the ban in 2020 and reaffirmed it in a March 2024 update. This tough stance on crypto has driven firms like crypto exchange Bybit to suspend their operations in the UK.

Challenges in Regulating Crypto Ads

The FCA has also struggled to remove all illegal crypto ads, with nearly half of flagged promotions still online. Between October 2023 and October 2024, the FCA issued over 1,700 alerts about illegal crypto ads, apps, and websites, but less than 55% were taken down.

Low Approval Rates for Crypto Registration Applications

The FCA has received 368 crypto registration applications since 2020, but only 14% have been approved so far. This low approval rate highlights the challenges faced by crypto firms operating in the UK.

For more news on crypto regulations and market trends, visit Global Crypto News.

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