FCA bans the sale of crypto-derivatives to retail consumers (UK)

[Readr]

Apologies, this has probably been discussed already but I have been living under a rock, kind of... Can someone please explain what this means for people who have been investing using platforms like Kraken or Binance? . Will it be illegal to put money into these accounts from the 6th of January?

Full communication from FCA here:
www.fca.org.uk/news/press-releases/fca-bans-sale-crypto-derivatives-retail-consumers

Ive been kindof following this. Its not entirely clear at the moment what exactly this will cover, however it isnt likely to affect anyone who has an account in crypto at a recognised exchange.

What it may effect are

• defi protocols like Synthetics, Opium or UMA, which have derivatives trading in commodities like oil will almost certainly come under this. Wider defi protocols might also find themself in a grey area,. How much they can actually "do" about this is arguable tho.

• paypal (the bitcoin you buy on paypal isnt actual bitcoin, its a btc derivative) but paypal is a big org, so any impact is likely to be dealt with, either by banning crypto purchase from UK nationals, or somekind of agreed fudge with the FCA.

• stablecoins - things like USDT, USDC, DAI tGBP etc are crypto derivatives of national currencies. They may come under greater scrutiny.

There are also new regulations coming in around KYC/AML, where all crypto businesses must be registered with the FCA. Its worth checking that any that you deal with are registered (Binance and Kracken both are)
www.fca.org.uk/cryptoassets-aml-ctf-regime/register

Thank you, @Cailleachian.