This Policy Statement (PS) summarises feedback to CP19/22. It sets out our final policy position and Handbook rules that will come into force on 6 January 2021.
We're consulting on lifting the ban on crypto exchange traded notes (cETNs) to retail investors to support the growth and competitiveness of the UK's crypto sector.
Read PS20/10 technical annex (PDF)
We believe that retail consumers can’t reliably assess the value and risks of derivatives (contracts for difference, futures and options) and exchange traded notes (ETNs) that reference certain cryptoassets. This is due to the:
We think these issues will cause retail consumers harm from sudden and unexpected losses if they invest in these products. We estimate a ban could reduce harm by £19m to £101m a year for retail investors.
This PS will be particularly relevant for:
It is likely that this PS will be relevant to additional stakeholders, both regulated and unregulated.
There is growing evidence that cryptoassets are causing harm to consumers and markets. As a result, the UK Cryptoassets Taskforce, consisting of the Treasury, the FCA and the Bank of England, published a Final Report in October 2018 setting out the UK’s policy and regulatory approach to cryptoassets and made a number of commitments. It included a commitment to consult on a potential ban on the sale to retail consumers of derivatives that reference certain types of cryptoassets.
In July 2019, we published CP19/22 (PDF). This PS summarises the feedback we received. It sets out our final policy position, and Handbook rules that will come into force.
We are publishing final rules with this PS. Firms who carry out marketing, distribution or selling activities in, or from, the UK of the relevant products to retail clients, will need to comply with these rules by 6 January 2021.