Admiral Markets UK to set open crypto CFD positions to close only
Admiral Markets UK, the London based FCA-regulated arm of global Retail FX and CFDs broker Admiral Markets has sent out a note to retail clients indicating that all open cryptocurrency CFD positions will be set to “close only” starting January 4, 2021. The move is being made in concert with new rules in the UK being introduced by the FCA to ban all crypto CFDs for retail traders, beginning January 6, 2021.
The company pointed out that despite major cryptocurrencies emerging as a major part of global financial newsfeeds, the asset class is still in its early stage of becoming mainstream in the investment world. During this time, financial authorities of different countries often take differing regulatory approaches to address the opportunities and risks in the wider use of digital currencies.
Admiral Markets UK Ltd told clients that regardless of your country of residence, beginning January 4, 2021, open positions in digital currency CFDs will be switched to close-only mode. After this change, clients will not be able to open any new positions, or increase existing positions, in any instruments from this group.
Professional clients of Admiral Markets UK are not included in this new policy. A client registered as a Professional client will see no change, and can continue trading CFDs on digital currencies on regular terms. The move will also not affect clients in Admiral Markets’ other licensed operations in other countries, which include Australia and Cyprus.