Extreme volatility in crypto-asset price movements.
Inherent nature of the underlying assets, which means they have no reliable basis for valuation.
Prevalence of market abuse and financial crime in the secondary market.
Inadequate understanding of crypto-assets by retail consumers.
Lack of legitimate investment need for retail consumers to invest in these products.
‘Significant price volatility, combined with the inherent difficulties of valuing cryptoassets reliably, places retail consumers at a high risk of suffering losses from trading crypto-derivatives. We have evidence of this happening on a significant scale. The ban provides an appropriate level of protection.’ – he added.