Breaking: UK bans sale of Bitcoin, Ethereum and XRP derivatives to
retail consumers
The market for crypto-derivatives, e.g. Bitcoin, Ethereum, XRP and other cryptocurrencies has taken a severe hit. The UK Financial Conduct Authority (FCA) has banned its trading for retail customers.
In the official announcement, the regulator declared that the above products are “harmful” to consumers for 5 main reasons.
Firstly, the regulator stated that the underlying assets do not have a reliable basis to protect their value.
(Editor Comment: How about letting the Free Market determine the Value instead of Manipulative Regulators as in the Fiat currency market.)
Second, the FAC believes that abuse, illegal activities and financial crime are widespread in the secondary crypto market.
(Editor Comment: Abuse, illegal activitties and financial crime have been widespread in Fiat Currencies forever. How about banning them? (Coming soon) )
In addition, the FAC argues that cryptocurrencies are extremely volatile and that end-users “do not have a sufficient understanding” of the underlying assets.
(Editor Comment: The Stock Market can be extremely volittile and many end-users have little understanding of the underlying assets.)
Finally, the FCA claims that investing in derivatives of cryptocurrencies is “harmful” investment.
(Editor Comment: Harmful to who? The Regulators because they don't have manipulative conttrol?)
The regulatory authority states:
These features mean retail consumers might suffer harm from sudden and unexpected losses if they invest in these products (…) which includes well-known tokens such as Bitcoin, Ether or Ripple (XRP). Specified investments are types of investment which are specified in legislation. Firms that carry out particular types of regulated activity in relation to those investments must be authorised by the FCA.
UK’s FCA targets Bitcoin, Ethereum and XRP derivatives
The UK regulator claims that the ban on crypto derivatives will save UK consumers around £53 million a year.
(Editor Comment: It will also keep the UK consumers that have made profits from receiving them.)
In addition to the ban, the FCA has determined to prohibit the distribution and marketing of any derivatives to UK consumers. Specifically, the FCA mentions the following derivatives: options, futures, contracts for difference (CFDs), and exchange-traded notes (ETNs).
The measures apply to companies and firms “operating within or outside the United Kingdom”. The Executive Director of Strategy and Competition for the FCA, Sheldon Mills, stated:
This ban reflects how seriously we view the potential harm to retail consumers in these products. Consumer protection is paramount here.
(Editor Comment: This ban reflects how seriously they view manipulative Control over consumers. Regulator's Manipulative Control is paramount here.)
Significant price volatility, combined with the inherent difficulties of valuing cryptoassets reliably, places retail consumers at a high risk of suffering losses from trading crypto-derivatives. We have evidence of this happening on a significant scale. The ban provides an appropriate level of protection.
(Editor Comment: This ban provides nothing except Regulator Control over the UK cittizens.)
According to the FCA’s announcement, the prohibitive measures will take effect from 6 January 2021. The regulator has asked companies and firms that trade in crypto derivatives to stop their operations before this date. In the meantime, the regulator advises investors to “stay alert” for crypto-scams. From now on, they qualify all companies offering crypto derivatives products to retail consumers as “possible scams”.
(Editor Comment: It takes one to know one.)
In a separate document, the FCA also clarified that its measures will affect firms that issue or create crypto derivatives, firms that distribute them (brokers, financial advisors, and investment platforms), marketing firms that reference the referred derivatives, traders, consumers, and retail consumer organizations. With regard to consumers, the FCA states:
Retail consumers with existing holdings can remain invested following the prohibition, until they choose to disinvest. There is no time limit on this, and we do not require or expect firms to close out retail consumers’ positions unless consumers ask for this.
(Editor Comment: Fascism Marches On in the UK.)
(Editor Note: this Post is based on information collected by Reynaldo of Crypto News Flash)
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TP
On D1, XRP/USD keeps forming an uptrend after a correction. Upon correcting from 50.0% Fibo, the quotations are trading near 38.2%. At the current stage, this may signify the end of the pullback and further growth. If the pair breaks away 50.0% Fibo, it has all chance to reach the next step at 61.8% inside the ascending channel. The MACD histogram is in the positive zone, and the signal lines have formed a Golden Cross, which additionally signals the continuation of the uptrend. The goal of the growth is near 0.2584 USD.
On H4, the pair keeps growing inside the ascending channel. It is currently testing 38.2% Fibo. A breakaway of this level will let the price proceed to the next checkpoint of 50.0% Fibo. The Stochastic has formed a Golden Cross, which signals the continuation of the growth. The goal is at 50.0% Fibo.According to the cooperative investigation by the watchers from the UCL Blockchain and Imperial College London, Ripple uses its capabilities to carry out voluminous transactions inefficiently. The results of watching money transfers from October 1st until December 31st show that only 2% of the transactions in the Ripple network are meant for payment. By the way, productive transactions are mostly connected with the Huobi exchange.
Among fundamental news, note the information that Ripple must be starting the work n a new credit product based on the blockchain. Such a conclusion may be made from this vacancy. The main object of work must be a product meant for business interests and covering for the demands of the companies that have troubles with current capital. We may deduct a rough scheme of the product: it might be quick credit for current capital; it is formed fast, calculated easily, and repaid soon. Such a product may yield high demand, keeping in mind the number of companies that Ripple is already working with.
Article Produced By
Dmitriy Gurkovskiy
https://themerkle.com/xrp-price-analysis-for-may-15th-xrp-switches-to-correction/