Share this article
UK's Ban on Crypto Derivatives Goes Into Effect Today
The Financial Conduct Authority ban on the sale of derivatives and exchange-traded notes was passed in October.
Updated Sep 14, 2021, 10:52 a.m. Published Jan 6, 2021, 9:48 a.m.
Make us preferred on Google
The Financial Conduct Authority's (FCA) ban on the sale of derivatives and exchange-traded notes (ETNs) passed in October went into effect Wednesday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
- The U.K. financial regulator has said it considers the products to be ill-suited for retail consumers due to the potential harm they pose.
- The new regulation is being criticized by some in the crypto sector, who argue the ban is a setback and that retail investors should have access to the same opportunities as institutions.
- The banning of cryptocurrency derivatives will drive retail users to unregulated platforms like Deribit and BitMEX, which will offer even less protection than the regulated players, argued Dermot O'Riordan, partner of Eden Block, a European venture capital firm focused on blockchain technology.
- U.K.-based investment firm Hargreaves Lansdown took action ahead of the deadline and removed products such as the XBT bitcoin tracker from its platform.
- “Investors are no longer able to buy these products through HL, but they can continue to hold investments that they already own, and can sell them when they wish to do so," said Danny Cox, head of external relations at Hargreaves Lansdown.
Read more: FCA Bans Crypto Derivatives for Retail Consumers in UK
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
What to know:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
Top Stories
