European government is considering to put a ban on cryptocurrency derivates and restrict crypto-based contracts in the market. The Financial Conduct Authority said that it will begin consultations whether to ban the sale of derivates based on digital coins like BTC. The watchdogs are worried about consumer protection and hence have taken a stand to ban the cryptocurrency-linked derivative products.
Meanwhile, Russia’s Federal Financial Monitoring Service has disclosed that it will regulate cryptocurrency transactions in the country. Russia watchdogs plan to register, license and monitor cryptocurrency exchanges, crowdfunding platforms and providers of wallet services for digital assets.
Russia, like the UK, plans to introduce a regulatory system to prevent money laundering that is most likely to happen while trading in cryptocurrency. Europe watchdogs have complained that cryptocurrencies are risky and will promote illegal activities like terrorism and money laundering. Keeping this in mind, the watchdogs have ramped up pressure on governments to introduce a series of regulations to prevent the risk of financial instability in the market.
Despite the concept of cryptocurrency penetrating the markets and growing in demand, the major concern remains. The U.K. will not tolerate the use of crypto assets in illicit activity, and the authorities will take strong action to address these risks by bringing all relevant firms into anti-money laundering and counter-terrorist financing (AML/CTF) regulation,” it warned, as reported in Bitcoin News.
Russia too is taking the necessary steps to curb illicit activities in order to protect the consumer interests and the economy. Therefore, the financial regulators of Russia will regulate the cryptocurrencies and fiat money as well as transactions between digital assets, as reported in Business Telegraph. It is undeniable that the cryptocurrency market is surging and is attracting the interests of many financial economists. However, one cannot deny the fact that cryptocurrency involves many risks and it has become essential to oversee and regulate all crypto related transactions.
The post European Regulators Bans Cryptocurrency Derivatives and Restricts Contracts In Market appeared first on OWLT Market.
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