LTCUSD remains in a range, even as the Financial Conduct Authority (FCA is considering a blanket ban on trading of cryptos and crypto derivatives. With this action, the FCA, ), the UK financial market regulator, is extending similar restrictions it has already imposed on trading of Contracts for Difference (CFD) assets.
These restrictions are being considered because the FCA feels that unsophisticated traders do not have adequate skills and knowledge about the risks associated with these highly risky assets.
However, it remains to be seen how this ban is to be implemented. With regards to CFDs, FCA decided to act from the brokerage side of the equation, prohibiting the sales, marketing and distribution to retail customers of UK brokerage companies.
It would seem that the FCA may act directly on the retail end by prohibiting retail investors from crypto trade participation. This would also entail what kinds of crypto-assets would fall under these prohibitions.
A report based on work done by the UK Crypto-asset Taskforce has also made commitments, which include promoting relevant AML and responsible development of products based on distributed ledger technology (DLT).
If this move takes hold in 2020, it will have widespread implications on how UK traders can approach the crypto market.
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Litecoin (LTCUSD) Outlook
The LTCUSD pair has largely ignored the FCA announcement and continues to trade in a range after the big moves of two weeks ago heralded the breakdown of key patterns on the chart.
In the near term, the range floor remains the 52.19 mark (September 26 and October 7 lows) while the ceiling is at 58.05 (highs of 26 Sept and 7 Oct). A downside break of 52.19 continues the downtrend with immediate support at 40.85 (July 2017 lows).
If bullish sentiment hits the crypto market, a price recovery to the August 30 low (ex-support turned resistance) of 61.62 is possible.