UK FCA reckons Crypto-Derivatives yet to play with a full deck, ponders to forbid amid skirmish underlying trend

Usually, the investors and traders, contemplating trend direction and price forecasts, can hedge their exposures in various asset classes. But using crypto-derivatives instruments, to evaluate the future prices of this unconventional currency BTCUSD has slightly been a tricky thing. 

When the CFTC allowed the derivatives mechanism of bitcoin futures contracts for the U.S. CBOE and CME exchanges about a year ago, a process it was deeply engaged with for months.  Chairman Giancarlo affirms that the agency is devoted to engrave out deceptive actions, which would assist to establish a secured atmosphere in which consumers could invest.

Meanwhile, Giancarlo defended the U.S. scorecard for blockchain innovation, most remarkably by building a model for bitcoin derivatives comprised of “bitcoin futures trading on the CME and also bitcoin options and bitcoin clearing,” he said, adding: “We’re leading the world in that.”

Elsewhere, Cryptocurrency derivatives, including cryptocurrency futures, cryptocurrency CFDs, and cryptocurrency options) have been under the meticulous scanner of the UK’s Financial Conduct Authority (FCA).

For now, FCA appears to be watching over a probable ban on the cryptocurrency-derivatives, as per the FT report.

Amidst the struggle for price recovery across the board in crypto-pairs, the UK financial watchdog mentioned that it is likely to examine and debate over this matter during Q1 of 2019 on whether it would go ahead with the potential ban on crypto-based derivatives instruments or not. Furthermore, the regulatory agency asserted that cryptocurrencies have still no intrinsic value and investors should be equipped to bear potential loses, if they gamble into the unregulated territory. The macro level concerns are also reiterated by the agency especially on the amount of manipulations and fraudulent actions among the crypto space, appending that it may render the criminals a tailer-made avenue for the money- laundering.

“A combination of market immaturity, illiquidity and a lack of available information regarding the market give rise to concerns about market integrity,”the FCA rationalized.

Currency Strength Index: FxWirePro's hourly BTC is flashing -66 (bearish), hourly EUR spot index is flashing at 106 levels (which is highly bullish), while hourly GBP spot index was at -56 (bearish) while articulating at (13:42 GMT). For more details on the index, please refer below weblink:

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