Bitcoin and Its Derivatives Banned in the UK
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Every firm operating in or out of the UK has just been banned from selling crypto-priced products. The new law is an effort by the FCA that should supposedly provide an appropriate level of protection for customers.
Experts think otherwise, though, instead claiming that Brits are being ripped off.
New FCA Rules
Under the newly introduced FCA rules, honest Brits won’t get ripped off by people who don’t truly understand how cryptocurrencies work. The law is supposedly aimed at these people, but to be honest, it just doesn’t work for anyone.
The Financial Conduct Authority has warned that many people are already losing a significant amount of cash. By banning the specific product known as Exchange Traded Note, the FCA has literally disabled UK citizens from making money on cryptos such as Bitcoin. Crypto investors make their money through investment products that track the price of currencies. By investing in them, they make money on cryptos’ current or future prices in a similar manner to people that make money on the price of gold.
With those products now banned, you won’t be able to make money based on a cryptocurrency’s price anymore. The good news is that the law doesn’t ban the direct sale and use of cryptos. You can still use them as currency, but you won’t be able to make money by predicting the price anymore.
Bitcoin casinos, for example, are still alive under the new law. However, people are rightfully concerned about what happens next. If the FCA does this right now, what could happen in the future?
Rightful Concern
No matter how good the FCA’s intentions are, there’s rightful concern among UK crypto fans that this is only the first step toward a full-blown crypto ban. This could be happening very soon as the government is not very fond of Bitcoin and cryptos. While Bitcoin online gambling is becoming more and more popular (and dominant), it could be cut off at the roots if the government will have its way with it.
The new FCA ban comes into effect on January 6, 2021. By that date, you can still make money off Bitcoin’s current and future price. After it, however, you can be pretty much sure that anyone offering that kind of service is a scammer.
According to the FCA, the ban will save Brits around £53 billion annually. The FCA announced that these products are “ill-suited” to retail customers and that they’re not reliable at all. However, many are concerned that the ban will be followed by stricter crypto regulation that could see cryptos banned in full. While smaller countries are realizing the great potential of Bitcoin and the likes, major governments are still blind to the truth.
