The UK Financial Conduct Authority(FCA) crusade began in October 2020 when it announced a ban on the sale of cryptocurrencies to retail consumers. That is, the United Kingdom banned Contracts for Difference (CFDs) with cryptocurrencies,in addition to, for example, options or futures.
The reasons that led them to make this decision are:
- That cryptocurrencies do not have a reliable basis for their valuation.
- That market abuse and financial crimes abound.
- Its “extreme volatility”.
- The limited knowledge of cryptocurrencies that consumers have.
- Lack of “legitimate investment.”
Three months later, the FCA has once again taken to the fore the risk of investing in cryptocurrencies. In another statement they call into question the good intentions of companies that offer investments in cryptoactives and promise high returns. Trading virtual currencies, they warn, “involves taking very high risks. If consumers do, they must be prepared to lose all their money.”
If contacted by any of these companies, they point out, the user must act like this:
- Check if the company is in the Financial Services Registry or in the list of companies with temporary records.
- If not, ask the company if it is enabled to perform those operations without being registered with the FCA.
- If the answer is no, FCA recommends that the consumer remove their cryptocurrencies.
Spain does allow cryptocurrency trading
Unlike in the British country, in Spain it is allowed to invest in cryptocurrencies and trade CFDs. A press release issued by the National Securities Market Commission (CNMV) on 8 February 2018 listed a number of modalities for the marketing of cryptocurrencies. They were these:
- Direct marketing.
- Cfds.
- Futures,options and other derivatives.
- Investment funds or other investment vehicles that trade on cryptocurrencies.
- Structured bonds whose underlying are cryptocurrencies.
In fact, they emphasize that the list should not be considered closed, but that “constant innovation in products and channels can lead to additional forms of exposure to bitcoin or other cryptocurrencies.”
The question now is: will the Spanish authorities follow the uk's example?
