Digital asset management firm CoinShares is pushing back on the Financial Conduct Authority’s (FCA) proposal to ban crypto derivatives for retail investors by encouraging users to raise objection.
CoinShares Challenging FCA Guidelines
CoinShares has responded to the UK’s controversial new guidelines set forth by the FCA by creating a template for clients to voice their displeasure with the policy. According to the updated guidelines, which were published in July, the FCA is considering banning the sale of crypto derivative assets to retail investors over the potential for market abuse.
CoinShares, which operates publicly-traded cryptocurrency exchange-traded notes (ETNs), believes that the watchdog’s new guidelines are too restrictive. In a letter sent to investors on Sept. 23, the firm asked clients to take action against the regulatory body via a premade template on its website.
The letter states,
We believe that the FCA has not provided sufficient evidence to justify the proposed ban. Through its consultation, the regulator makes little attempt to genuinely evidence its claims and instead ‘cherry picks’ datasets in order to illustrate its perception of cryptoassets, ETNs and the perceived harm the FCA believes these products cause.
Crypto users have until Oct. 3 to submit their comments to the FCA.
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