London-listed forex and derivatives trading platform IG Group (IGG) is asking retail clients to close their open spread bet and contract for difference (CFD) positions on cryptocurrencies.
According to a post from an administrator on IG’s forum Sunday, the firm has now reached its internal product limit for exposure to cryptocurrencies, and as a result, will be removing them from its offerings. Until then, IG will be increasing its margin requirements, the admin said.
The relevant positions on cryptocurrencies must be closed by 15:00 local time on March 24. After that, IG will close any positions still open based on its prevailing bid/ask prices, they said.
The move comes after the U.K.’s Financial Conduct Authority (FCA) ban on the sale of derivatives and exchange-traded notes came into effect on Jan. 6, after the financial regulator said it considers the products to be too high risk for retail consumers.
Since the ban was implemented, IG has restricted U.K. retail clients from increasing their exposure to cryptocurrencies, the admin said.
The FCA’s restriction has been criticized by some in the crypto industry, who argued that U.K. retail investors should have access to the same opportunities as institutions and that the ban would drive traders to unregulated exchanges.