RoboMarkets cuts crypto CFDs
RoboMarkets, a European financial broker, informs that it will no more provide trading services for cryptocurrencies. On March 24th all positions in crypto CFDs will be closed by current quotations.
Cyprus based Retail FX and CFDs broker RoboMarkets has announced that it will no longer provide trading services for cryptocurrency CFDs. The company said that this decision has been made in order to protect the company’s clients from high risks existing in the crypto market.
On March 24th, between 12:00 and 13:00 server time, all positions in BTCUSD, BTCEUR, XRPUSD, DSHUSD, LTCUSD, LTCBTC, ETHUSD, ETHBTC, ETHEUR, EOSUSD will be closed at the then-current quotation levels.
Denis Golomedov, CMO at RoboMarkets commented on the decision:
“We have claimed repeatedly that our priority is protection of clients’ interests. That is why we have decided to close crypto for our clients. This will help us make the clients’ assets safe from high risks entailed by operations with crypto instruments”.
On January 6th, 2021, the UK Financial Conduct Authority (FCA) officially banned selling to individual clients derivatives and exchange traded notes (ETNs) based on certain types of crypto assets. While that ban applies only to FCA regulated companies, CySEC regulated RoboMarkets is removing crypto CFDs from its own lineup.
“We see that large regulators, such as the FCA, have already made steps to limit access of retail investors to cryptocurrencies and expect other European regulators to do the same in the nearest future. The crypto market is rather toxic and connected to high risks, quite often neglected by retail investors. The growth of the crypto market and the hype around this segment can lead to a serious disturbance among retail investors and brokers in 2021”, added Denis Golomedov.