U.K policymakers debate prohibition on crypto investment products… Details inside
The United Kingdom’s Regulatory Policy Committee has challenged the stance of the Financial Conduct Authority on [prohibiting] the sale, marketing, and distribution of derivatives and exchange-traded notes (ETNs) of crypto assets to the country’s retail investors.
Prohibiting the sale to retail clients of investment products that reference cryptoassets: RPC Opinion (Red-rated) [direct pdf]
According to a recent report compiled by the Regulatory Policy Committee (RPC), the FCA’s implementation was “not fit for purpose.”
That's a polite way to say it is "garbage".
Playing with their own numbers, the RPC then claims:
According to the RPC, FCA’s measures led to an overall annual loss of more than £268 million. In the RPC’s opinion, the regulator failed to support its assumptions with evidence. Moreover, it had not provided enough explanation for the cost-benefit analysis used to derive the equivalent annual net direct cost to business (EANDCB).
This is all rather embarrassing for a government that claims to be a financial "hub". Allowing only the wealthy to become even more wealthy has its downside; that there are far more retail investors out there.
a hub of indecision - and greed.
the point remains that regulators do not want retail customers to become rich - poor people are more dependent.