Crypto account frozen "Temporary market restriction"

[davidp72]

Why has my Crypto account been frozen just before I was going to sell on the Ethereum surge? how can a platform get away with this? I've lost thousands $$

"Temporary market restriction

You can’t currently buy to open on cryptocurrency markets, as we’ve reached our internal limit.

[CharlotteIG]

10 hours ago, davidp72 said:

Why has my Crypto account been frozen just before I was going to sell on the Ethereum surge? how can a platform get away with this? I've lost thousands $$

"Temporary market restriction

You can’t currently buy to open on cryptocurrency markets, as we’ve reached our internal limit.

Hey, 

Thanks for your post. I'm sorry for the changes that have been made. Below are the details you will need. Sorry for the inconvenience. 

 We have now reached our internal product limit for exposure to cryptocurrencies, and as a result will be removing cryptocurrencies from our offering to UK retail clients. Ahead of this, we will also be increasing margin requirements.

Please ensure that you close all your open spread bet and/or CFD positions on cryptocurrencies by no later than 3pm on Wednesday 24 March 2021, from which point we will start to close any positions still open based on our prevailing bid/ask prices. This action is taken in accordance with Term 28(3) of the latest version of the applicable customer agreement governing your account(s) with IG.

All the best 

Charlotte

[minercracker]

Why can't I close my positions in cryptos?

[Max_]

Hello,

Similar question, is this because of the FCA's recent regulation? Why would the FCA, or IG for that matter, decide which risks we can or cannot take? May as well ban retail trading altogether and only allow the common man to save at the bank for a 0.1% interest p.a., since it's the only safe option. It's also the best way to lose purchasing power against the inflation generated by the billions of GBP printed by the BoE every month, something the FCA is somehow failing to regulate.

Frustratingly, crypto being the only markets open 24/7, they were ideal to trade over the weekend. This option has now been taken away - fantastic for those of us who also work a 9-5 during the week. If it is indeed an FCA thing then fair enough, not much IG can do. Though having the option to trade crypto on demo accounts would be nice still as it would at least enable testing of new strategies over the weekend.

Regards

[Caseynotes]

41 minutes ago, Max_ said:

Hello,

Similar question, is this because of the FCA's recent regulation? Why would the FCA, or IG for that matter, decide which risks we can or cannot take? May as well ban retail trading altogether and only allow the common man to save at the bank for a 0.1% interest p.a., since it's the only safe option. It's also the best way to lose purchasing power against the inflation generated by the billions of GBP printed by the BoE every month, something the FCA is somehow failing to regulate.

Frustratingly, crypto being the only markets open 24/7, they were ideal to trade over the weekend. This option has now been taken away - fantastic for those of us who also work a 9-5 during the week. If it is indeed an FCA thing then fair enough, not much IG can do. Though having the option to trade crypto on demo accounts would be nice still as it would at least enable testing of new strategies over the weekend.

Regards

The FCA are the govt's regulator for financial markets, they can take away IG's licence to do business. 

The FCA has decided to ban leveraged crypto trading, just as the EU regulator ESMA decided to ban high leveraged CFD trading, just as the US SEC decided to ban CFDs altogether.

Don't blame the broker for govt regulation.

 

 

[davidp72]

I currently reside in Australia, do these regulations affect me?

 

[Joo]

You guys should feel really lucky that IG is forcing a close on your positions at the top of the market.

[Dorospa]

It seems like IG taking care of you fellas closing the positions at the top)) Some governments are starting to play at the crypto market by adding blocks, law restrictions, taxes, etc.