Recommendation From An Official In The Netherlands To Restrict Transactions With Cryptocurrency Derivatives

A financial official in the Netherlands is proposing a restriction on which cryptocurrency investors can trade in derivatives.

According to Paul-Willem van Gerwen of the Financial Markets Authority in the Netherlands ordinary investors in the cryptocurrency market using instruments such as options and futures contracts operation should be prevented.

Van Gerwen, who thinks that unqualified investors should be prevented from trading with derivative instruments based on cryptocurrencies, said that these markets that it is not transparent enough, it is open to manipulation and other illegal transactions. stressed that.

Authorities in the UK introduced a similar ban in 2020. Due to the practice implemented by the Financial Conduct Authority (FCA), such transactions can only be made by professionals.

Although the Financial Markets Authority does not yet have such a comprehensive authority over the cryptocurrency market, this may change after the European Union implements the cryptocurrency regulations (MiCA).

Apart from these, Van Gerwen, thanks to the distributed ledger technology reduce the cost of business transactions and gave the message that this technology should be used more widely. However, Van Gerwen did not consider such procedures. centrally run also stressed its importance.

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