UK FCA Bans Retail Sale of Cryptoderivatives

On the grounds that among others they cannot be reliably valued, the U.K. Financial Conduct Authority (the “FCA”) has banned the sale, distribution and marketing to retail customers of derivatives and exchange traded notes based on unregulated cryptoassets as of January 6, 2021.  The FCA has said that this does not include security tokens as they are already investible assets and certain other  tokens.  Retail holders of existing assets will not be required to divest but will not be able to reinvest.  This further limits the range of investible cryptoassets.