CoinShares has a product that pays investors like a bond and the ETN product is based on the value of assets such as Bitcoin, Ethereum, Litecoin and XRP. The FCA have taken issue with such products as the price they are pegged to are subject to fluctuations from the exchanges.
With the FCA saying:
“retail consumers cannot reliably assess the value and risks of derivatives and exchange-traded products that reference certain cryptoassets.”
CoinShares think the FCA’s actions are too hasty and believe that not enough research has been done into the product. They stated:
“We believe that the FCA has not provided sufficient evidence to justify the proposed ban. Through its consultation, the regulator makes little attempt to genuinely evidence its claims and instead ‘cherry picks’ data sets in order to illustrate its perception of cryptoassets, ETNs and the perceived harm the FCA believes these products cause.”
CoinShare took to their userbase to ask if they could sign a petition to revoke the new ruling. They put together a pre-formatted email that customers could send over to the FCA to ask for a reconsideration before the 3rd October deadline. It is not fully clear how many of its users have backed Coinshares but the numbers will become clearer in the coming days.
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