RoboMarkets, a Cypriot broker offering trading services across Europe, announced on Wednesday the termination of its services with cryptocurrency contract for differences (CFDs) to protect its clients from high-risk investment instruments.
The press release shared with Finance Magnates detailed that the broker-dealer will close all cryptocurrency positions at current quotations on March 24th ‘between 12:00 and 13:00 server time’.
The brokerage has been offering digital currency trading for years and currently lists ten crypto CFDs instruments: BTCUSD, BTCEUR, XRPUSD, DSHUSD, LTCUSD, LTCBTC, ETHUSD, ETHBTC, ETHEUR and EOSUSD.
Commenting on the move, RoboMarkets CMO Denis Golomedov said: “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.”
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Regulators Are against Crypto Derivatives
Additionally, the Cypriot broker highlighted the United Kingdom regulator’s ban on the sale of retail cryptocurrency derivative products to justify its latest decision. While many UK-regulated brokerages like IG Group dropped crypto instruments, RoboMarkets was not compelled to take the step.
“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 near future,” Golomedov added.
“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.”
With the volatility and demand for cryptocurrencies, many brokerages are freshly adding cryptocurrency CFDs. Finance Magnates earlier reported that ThinkMarkets stated to offer services with four cryptocurrencies due to high demand among its client base.