So, if the UK decides to ban crypto derivatives, does that mean traders can't trade them on exchanges based in other countries?
Are there any options for retail traders to get into futures trading while being in the UK?
And what happens to your profits if you only find out about the ban after making some trades?
I do not think so. The Financial Conduct Authority (FCA) only has authority for operations within the region, and can only act on regulated platforms.
You can, through unregulated exchanges. This however poses significantly more risks. DYOR.
You should still be able to sell. The ban prevents regulated exchanges from selling to retail investors.
Thank you for respond, My concern is taxation, The HMRC will probably audit , I need to find out if they are ok if I am willingly trading derivatives in outside exchange.
I emailed FCA yesterday, hopefully the respond is positive.
Thanks again for your help my man
Well I will think IMO that it could also be a ban for traders as such because what makes it ban will make it ban for traders. It is jurisdiction based , ban is to discourage it. It may have some restrictions though but can still be going on through other means like P2P. When it is flagged as ban , it because illegal but maybe you will have solution from your email response.
I think it might be illegal to create synthetic crypto derivatives on exchanges in the UK, it might not be illegal to trade on such derivatives if you can get a hands-on one. Can you please help with any reference text from where you are saying that such a thing is illegal in the UK? I know so many trades in the UK who do trading in Derivatives. Talking about profit I don't think you would be traced out for such small profits. If you are worried about taxation then I would recommend you to pay taxes similar to what you would have paid if the derivatives were in stocks instead of cryptos. Take exactly a similar approach and pay taxes. I doubt there would be big digging on this.
As far as I know the FCA can't stop every British citizen from trading crypto, be it futures or investments, despite the FCA's prohibition policy to address the high risk of loss in trading crypto derivatives.
From the conclusions I read and the legal policies enforced by: FCA And to close this topic, I agree with what Edward Drake said here clearly has no effect on retail traders, as the OP mentioned.
British Technology is well sophisticated and enforcement of the law is done without delay or corruption. Hence, I believe if crypto derivative is banned in Uk, the FCA will be able to stop every British citizen from trading crypto.