The UK regulators are struggling to ban crypto derivatives and other crypto products. CoinShares responds to the regulators, stating that they are gathering pieces of evidence, that is shallow, to argue their potential decision to ban investment products related to cryptocurrency and other digital assets.
CoinShares also said the FCA, the UK regulators, think that crypto derivatives and other products involving digital assets are a threat to investors, but they don’t know how the crypto market works. “The FCA claims investing in crypto-assets is too dangerous, but they don’t even understand how the sector works,” CoinShares said in its letter to the FCA.
The Cryptoassets Taskforce, comprised of HM Treasury, the Financial Conduct Authority (FCA) and the Bank of England, was created in 2018 to regulate the crypto market and take measures to tackle potential threats. In October last year, the Taskforce announced its plans to ban a series of crypto products, including crypto derivatives, among others.
CoinShares Responds To UK Regulators That Try Banning Crypto Derivatives And Other Similar Products
“As the CATF Report found, we consider that retail consumers cannot reliably assess the value and risks of derivatives and exchange-traded products that reference certain crypto assets,” the UK regulators report reads.
The final decision of the regulators has to come out on October 3rd. Since the time is short, CoinShares decided to respond to the Taskforce in an open letter. CoinShare itself would be affected by the FCA’s decision to ban crypto derivatives and other products.
“We believe that the FCA has not provided sufficient evidence to justify the proposed ban. Through its consultation, the regulator makes little attempt to evidence its claims genuinely and instead ‘cherry-picks’ datasets (…) A positive return to investors is the most powerful benefit that investment can offer. Over the FCA’s chosen period [June 2017 to December 2018], COINXBE returned 50%, and if the FCA had chosen the range June 2017 through June 2018, a period which ended before the consultation was published, it would have found returns of 401%,” CoinShares stated in its letter.