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Cryptocurrency derivatives

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  • Cryptocurrency derivatives

    FCA statement on the requirement for firms offering cryptocurrency derivatives to be authorised.

    https://www.fca.org.uk/news/statemen...cy-derivatives
    Tags: None

  • #2
    We are aware of a growing number of UK firms offering so-called cryptocurrencies and cryptocurrency-related assets. As indicated in our Feedback Statement on DLT, cryptocurrencies are not currently regulated by the FCA provided they are not part of other regulated products or services.

    Cryptocurrency derivatives are, however, capable of being financial instruments under the Markets in Financial Instruments Directive II (MIFID II), although we do not consider cryptocurrencies to be currencies or commodities for regulatory purposes under MiFID II. Firms conducting regulated activities in cryptocurrency derivatives must, therefore, comply with all applicable rules in the FCA’s Handbook and any relevant provisions in directly applicable European Union regulations.

    It is likely that dealing in, arranging transactions in, advising on or providing other services that amount to regulated activities in relation to derivatives that reference either cryptocurrencies or tokens issued through an initial coin offering (ICO), will require authorisation by the FCA. This includes:
    • cryptocurrency futures – a derivative contract in which each party agrees to exchange cryptocurrency at a future date and at a price agreed by both parties
    • cryptocurrency contracts for differences (CFDs) – a cash-settled derivative contract in which the parties to the contract seek to secure a profit or avoid a loss by agreeing to exchange the difference in price between the value of the cryptocurrency CFD contract at its outset and at its termination
    • cryptocurrency options – a contract which grants the beneficiary the right to acquire or dispose of cryptocurrencies

    If you are unsure whether your firm requires authorisation, the FCA’s general guidance on the regulatory perimeter in PERG may be helpful. We also encourage you to seek expert advice if you have any remaining questions.

    It is firms’ responsibility to ensure that they have the appropriate authorisation and permission to carry on regulated activity. If your firm is not authorised by the FCA and is offering products or services requiring authorisation it is a criminal offence. Authorised firms offering these products without the appropriate permission may be subject to enforcement action.
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    • #3
      The laws try to make us earn as little as possible. This has always been the case and will always be the case because it is not in their interests. Even look at the businesses that people open. The tax service sets an unaffordable tax, so in the end, you are just left with a penny, with the same amount of money as if you were working for someone else. Just do not forget that opening your business you also spend a lot of nerves. I failed to become a good businessman and decided to try my luck with cryptocurrency. I buy and sell currency on OQEX Bitcoin and to be honest it is quite interesting and profitable.
      Last edited by AdamRichell; 9th May 2020, 17:18:PM.

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      • #4
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