Crypto Executives Critique U.K. Ban on Crypto Derivatives

Crypto executives are openly criticizing the U.K. Financial Conduct Authority (FCA) for its ban on crypto derivatives, arguing that it negatively impacts retail investors instead of providing protection.

Joshua Barraclough, CEO of One Trading and a former JPMorgan executive, described the ban as “terrible” in an interview with Financial News, asserting that it is “harming consumers.” He emphasized that investors should have the freedom to make their own investment choices, even if those choices involve risks.

Konstantinos Adamos, Revolut’s legal counsel for crypto, echoed Barraclough’s sentiments. He acknowledged the FCA’s concerns regarding the complexity and volatility of crypto derivatives but insisted that retail investors should retain the right to decide for themselves. Carly Nuzbach Lowery, founder of Gateway 21, added that the ban feels outdated, calling it “blunt” and unnecessary.

The FCA first implemented the ban in 2020, reaffirming it in a March 2024 update. This strict stance has compelled firms like the crypto exchange Bybit to halt operations in the U.K. Out of 368 crypto registration applications submitted to the FCA since 2020, only 14% have been approved.

In addition, the FCA has struggled to eliminate illegal crypto advertisements. Reports indicate that nearly half of flagged promotions remain online, despite more than 1,700 alerts issued by the FCA regarding illegal crypto ads, apps, and websites between October 2023 and October 2024, with less than 55% successfully removed.

Read more: FCA doubles down on hawkish crypto stance to fight money laundering