According to reports, the rule will be part of an order that seeks to make changes to the Financial Instruments and Exchange Act. The new development is expected to go live sometime in Spring.
The FSA’s main motive is to reduce the possibility of losses that can be incurred from margin trading. In other places and with other platforms, the leverage available is much more. For example, platforms like BitMex allow up to 100x in leverage. For Binance, the margin can be up to 125x.
In the 12 months before October 2019, the FCA opened investigations into 87 crypto firms.
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