The Financial Conduct Authority, the United Kingdom’s financial regulator, has informed many media outlets that it will hold meetings shortly to decide the legal aspects of Contracts for Difference on cryptocurrencies.
As most traders know, CFDs are not cryptocurrencies in and of themselves; instead, they are contracts that confirm a purchase at a specific price point. They do, however, have this handy tool called leverage, which is becoming increasingly popular with popular crypto exchanges all over the world.
The difference is that, due to regulation or the risky nature of CFDs in general, most of those crypto exchanges have maximum leverages of around 5:1 or 10:1. We must also remember that crypto CFDs are just a tiny part of the overall CFD product offering. CFDs on stocks and commodities are available. However, only crypto CFDs may be banned in the United Kingdom.
The EU has imposed limits on CFDs, restricting the Best UK CFDs Brokers from marketing CFDs and providing leverage greater than 30:1. The FCA and MFA reached a post-Brexit agreement on CFD regulations.
A further restriction on promotions that promoted trader incentives is in the European Union. A no deposit incentive is prohibited, whether for CFDs or Forex. Promoters of trading bonuses say it’s merely a tool to help new traders. It’s similar to what other crypto exchanges do today; the business supplies the money, and traders execute transactions. An aspiring trader will withdraw the initial balance and income only after earning enough commissions to repay the brokerage for the bonus.
The Financial Conduct Authority, the United Kingdom’s financial regulator, has informed many media outlets that it will hold meetings shortly to decide the legal aspects of Contracts for Difference on cryptocurrencies.
As most traders are aware, CFDs are not cryptocurrencies in and of themselves; instead, they are contracts that confirm the price point at the opening of the contract. They do, however, have this handy tool called leverage, which is becoming increasingly popular with popular crypto exchanges all over the world. Live4Trading.co.uk presents the top UK cfd providers.
The difference is that, due to regulation or the risky nature of CFDs in general, most crypto exchanges have maximum leverages of around 5:1 or 10:1. We must also remember that crypto CFDs are just a tiny part of the overall CFD product offering. CFDs on stocks and commodities are available, but only cryptocurrencies CFD are prohibited in the United Kingdom.