The UK Financial Conduct Authority (FCA) continues to ban retail trading of crypto derivatives, including futures and options, to protect investors from market risks.
Extension of the Ban on Crypto Derivatives
The FCA maintains its ban on retail trading of crypto derivatives, established in January 2021. This decision reflects the FCA's cautious approach aimed at protecting retail investors from speculative market risks.
Plans for Access to cETN
Retail access to exchange-traded notes (cETNs) will begin on October 8, 2025, expanding the choice available to retail clients. David Geale from the FCA stated that this will provide more options for consumers while ensuring protective measures remain in place.
Impact on Retail Investor Market
The ban will continue to impact the ability of retail investors to trade derivatives linked to unregulated cryptocurrencies. Experts predict that this will lead to sustained cooling in derivative markets for retail investors, while controlled access to cETNs may offer safer investment alternatives.
The FCA's decision to extend the ban on crypto derivatives reflects its commitment to protecting retail investors despite changing market conditions. The introduction of cETNs in 2025 may alter investment strategies by providing more stable options.
