The UK news about the cryptocurrency market baffled crypto traders and brokers who had been relying on the recent spike in the BTC price.
According to it, any deals connected with BTC or other cryptocurrency CFD trading are prohibited in the country. The ban came into force on January 6, and restricted brokers from their activity. However, investments in the most popular digital asset in the world remain legal.
Reasons for the ban and solutions for traders
Now traders have a question on how to continue operations without brokers. However, several variants are possible for them instead of using third parties’ services. The first one is to create an account on an offshore broker platform. However, this way out has some drawbacks. The UK has a perfect set of regulations, which may differ in other jurisdictions. Another solution is using a cryptocurrency exchange with direct purchasing and selling.
The Financial Conduct Authority, Great Britain’s regulator responsible for finances, decided to impose the ban to stop crypto trading in the country’s territory. The main reasons are a weak reliability level of digital assets, financial crimes connected with it, volatility in cost, and the regulatory body’s desire to protect crypto users from possible financial losses.
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