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4 weeks ago

Coin Shares to lobby against UK ban on crypto exchange trade notes.


 
Concerning the impending cryptoasset regulations, Coinshares, urges it's customers to lobby the UK’s Financial Conduct Authority (FCA).
 

CoinShares , according  to the letter sent out to customers today , has asked its customers to write emails and text messages to the UK regulator in support of exchange-traded notes (ETNs),  and one of  its premiere products, which would be banned under the proposed regulation for retail investors.
 
As CoinShares writes:
“ The FCA  are yet to  provided sufficient evidence to justify the proposed ban. Through its consultation, the regulator  didn't make good attempt to show their reasons for the ban rather they  selected data sets in order to illustrate its perception of cryptoassets, ETNs and the perceived harm the FCA believes these products cause.”

ETNs provide investors with returns based on a market benchmark such as the S&P 500 which is also like a bond. CoinShares also offers exchange-traded products for bitcoin, ethereum, litecoin, and XRP.

The FCA consultation paper claimed that “the value and risks of derivatives and exchange-traded products that reference certain cryptoassets  cannot reliably be assessed by  retail consumers. The paper was released this last July 2019. "
 
CoinShares said the FCA’s analysis on cryptoassets  according to today's letter

“outrightly shows a lack of understanding of their functionality, value and the motivations for why an investor might really need such products.”

They prepared a pre- formatted email  asking investors to send to the regulator, that the ban proposal was “unwarranted” and “not been properly considered or even another thought on a possible merits. 

Investors are expected to write to FCA on the the proposed ban or any proponent of cryptoassets — to write to the FCA before the Oct. 3 comment deadline over the proposed ban 

After publication, CoinShares CSO Meltem Demirors said the FCA’s proposed ban could actually set back the entire industry–inside and outside the UK–and not just CoinShares anyway

Meanwhile, UK retail investors who currently enjoy access to the crypto-ecosystem via our ETNs will see their access being cut off with presumably little recourse,  if the FCA is successful in pushing through the proposed ban .

Notably, the FCA has been clear as they added in their consultation that they intend to work with other regulators to ensure the ban is not circumvented .”

 

Credits:  David pan, Sly Bailey 
 
 
 

 

 

 

 

 

 

 



Florence Anusionwu


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