Will the Bitcoin ETP be impacted by the FCA's ban on crypto-derivatives in the UK?

What do you mean by this?

But as per FCA FCA bans the sale of crypto-derivatives to retail consumers | FCA, they are mentioning as Crypto derivatives and ETNā€™s
PS20/10: Prohibiting the sale to retail clients of investment products that reference cryptoassets | FCA

I think these links were already posted.

I would hope for the best and expect BTCE might be excluded!!!

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Iā€™d also like to believe BTCE will be excluded but seeing as both the fund managers and distributors said itā€™s impacted this seems highly unlikely. Just load up while you still can and buy real coins after if you want to buy more after 2021

The BTCE is an ETN.

The FCA has published final rules banning the sale of derivatives and exchange traded notes (ETNs) that reference certain types of cryptoassets to retail consumers

So Crypto CFDs and ETNs (like BTCE)

So basically coins are still fine, but you cant buy products that reference that underlying asset. Unless you go pro.

Speaking of which:

Professional Accounts

I am considering selling a significant portion of the shares in my ISA and purchasing BTCE instead so that I can shelter any future gains in the price of bitcoin (BTC) from capital gains tax (CGT).

@Team212, in light of todayā€™s notification that all cryptocurrency positions will be liquidated on Friday 27/11/2020, I urgently need answers to the following questions:

  • Does the notification only relate to the CFD platform, or does it include BTCE too?
  • When will you suspend trading on BTCE as a result of the FCA ban?
  • Can you give assurances that BTCE positions opened in the ISA platform will not be liquidated at any time in the future, and that it will be possible to track their price within the app?
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Do you have any more information about this? I did a quick Google search but didnā€™t find anything about an increase.

Theyā€™ve said you canā€™t buy crypto CFDs but do not have to close existing positions before the deadline. Can T212 make things clear once and for all, perhaps with a sticky thread.

Thereā€™s talk heā€™ll double it. This applies to any gains.

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Šs mentioned in the FCA rules - The ban will come into effect on 6 January 2021.

How will it affect your holdings in BTCE?

  1. Before 06.01.2021
  • You can freely trade BTCE until 06.01.2021
  1. After 06.01.2021
  • The instrument will be in close only mode, meaning that new positions canā€™t be opened & the existing ones can only be closed.
  • The instrument wonā€™t be visible for clients who donā€™t have holdings in BTCE, however, for those with already opened positions - the security will be visible, so they can track the price & the performance.
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@Martin, this will apply only on UK residents, right?

Thanks for taking the time to reply.

However, Iā€™m sure that youā€™ll forgive me for being sceptical about this part of your response; this is exactly what Trading 212 said about cryptocurrency CFD positions on 23/11/2020, only to reverse that decision two days later.

Is this 100% definite?

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Does this also apply to the Invest accounts?

Yep this thread is about Invest and ISA.

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Hi Martin, I was wondering if anything has changed after seeing this

Is there any chance weā€™ll be able to continue trading BTCE on Trading 212?

As per the link shared w.r.t temporary registration and licenses,
HanEtf is not part of both the lists and
ETNā€™s are still banned.

I would assume BTCE would be still banned in UK.

Iā€™m just topping up with the allocation I want ahead of 06 January 2021.

Then after that, will potentially add more exposure via Argo Blockchain, or directly via Coinbase Pro.

Think thatā€™s the best we can do to exploit the ISA wrapper ahead of close only mode due to FCA ruling.

Thanks for the answer! Do you also know if it will be also banned for countries outside the UK?

Oh I donā€™t know. The FCA are particularly backward but it would guess Europe may follow it. I havenā€™t seen anything to suggest they would yet.

As for T212 I canā€™t see if they have confirmed the buy button will disappear for just UK customers. I have a feeling they might just apply it to everyone but I havenā€™t seen this confirmed.

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