UK Finance Regulator Warns Against Cryptocurrency Derivatives

UK Finance Regulator Warns Against Cryptocurrency Derivatives

One of the U.K.’s finance regulator has warned consumers about a particular kind of derivative contract based on cryptocurrencies. In a release on its website , the U.K. Financial Conduct Authority (FCA) cautioned would-be investors in cryptocurrency contracts-for-differences, or CFDs. Under a CFD, the two parties involved agree to pay either side in the event that the underlying value of an asset – in this case, an amount of cryptocurrency – changes over time. These products allow users to speculate on the prices of different assets, and while cryptocurrencies fall under this umbrella, they ought to be considered very […]

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