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I'm presuming this is just out today as it's based on a report published on Monday.  

"The FCA considers these products are ill-suited to retail consumers who cannot reliably assess the value and risks of derivatives or ETNs that reference certain cryptoassets (crypto-derivatives). This is due to:

  • inherent nature of the underlying assets, which have no reliable basis for valuation
  • the prevalence of market abuse and financial crime in the secondary market for cryptoassets (eg cyber theft)
  • extreme volatility in cryptoasset price movements, and
  • inadequate understanding by retail consumers of cryptoassets and the lack of a clear investment need for investment products referencing them"
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Lots of "rumors" 

Saw this about CFDs in Aussie-land

"Regardless of whether customers of Australian brokers are from overseas, soon the regulator in the Land Down Under is expected to change the rules of the game. With its newly minted product intervention powers, ASIC is expected to ban products that it deems toxic in the coming weeks.

To date, there is no specific information as to what those might be; however, the vast majority of the market is expecting a complete ban of binary options and some limitations to CFDs. As previously emphasized by Finance Magnates, one senior executive in the industry from a major brokerage shared privately that he is hearing about a complete ban on CFDs for retail investors."

https://www.financemagnates.com/forex/brokers/exclusive-what-aussie-brokers-are-doing-with-overseas-clients/

 

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7 minutes ago, Kodiak said:

ASIC is expected to ban products that it deems toxic in the coming weeks.

ASIC very much in the footsteps of ESMA.

"Hi Peter, my understanding is that distribution and design relate to companies adequately discerning between different target markets in relation to their products. They have to take proactive measures to remain compliant in different jurisdictions, determine suitable investors, etc. Leverage cuts and product bans are already in ASIC’s hands now."

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This is quite typical behaviour in the financial services industry. 

Senior execs and inside traders cause the system to collapse, prompting a government bailout.

Regulatory authorities respond by slapping stifling prohibitions and restrictions on normal people (who didn't cause the crisis in the first place) and let the top execs (who were entirely responsible for the collapse of the system) retire with multi-million pound pensions intact.

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