The United Kingdom’s monetary regulator lifted a ban on crypto exchange-traded notes (cETNs) for retail traders in a transfer welcomed by business leaders as a step towards aligning the UK with world crypto markets as a digital asset hub.
On Friday, the UK’s Financial Conduct Authority (FCA) reversed the ban on retail entry to cETNs, with regulatory adjustments taking impact from Oct. 8. The ban was enforced in January 2021, citing excessive volatility and “lack of reliable funding want.”
Lifting the cETN ban displays a change within the regulator’s method to crypto property. In a press release, an FCA government mentioned the choice mirrored how the market had advanced and the way crypto-related merchandise are higher understood.
Industry stakeholders and onlookers shared their ideas on the event. Some hailed the transfer as a step towards progress, whereas others criticized the UK, utilizing satire.
Community reacts to FCA lifting the ban on crypto ETNs
“We are delighted to see this reversal,” mentioned Ian Taylor, board adviser at CryptoUK and chief working officer of HT Digital. “Until now, the UK has been an outlier on ETNs. This change displays the progress we’ve made towards introducing a extra proportionate method to shopper threat.”
Taylor instructed Cointelegraph that CryptoUK, a commerce affiliation for the digital asset business, has been lobbying for extra inclusive entry to regulated merchandise like ETNs, which monitor the efficiency of crypto property with out requiring direct possession.
Riccardo Tordera, the director of coverage and authorities relations on the UK-based funds business physique, The Payments Association, echoed Taylor’s optimism:
“The intrinsic nature of crypto means it may be accessed by everybody, from all over the place. The FCA ban on retail entry to sure crypto merchandise was hindering the UK’s probabilities of turning into a world crypto hub.”
Tordera instructed Cointelegraph that the FCA’s resolution permits people to “make their very own selections at their very own threat.”
He mentioned limiting entry to the cETNs had put the UK at an obstacle, undermining its world competitiveness.
“This is a welcome transfer,” he added. “The FCA ban was extraordinarily protecting and was already smoothed when skilled traders have been allowed entry final yr.”
While some welcomed the transfer, skeptics additionally chimed in. WallStreetBets founder Jaime Rogozinski summed up the second with sarcasm, saying, “Britain loves monetary threat —simply not the sort that includes, say, greens or an industrial coverage.”
Related: UK crypto hopes stall, however ‘encouraging indicators’ are there
Crypto derivatives stay banned
While the FCA reversed its ban on cETNs, the regulator clarified that crypto derivatives are nonetheless prohibited.
“The FCA’s ban on retail entry to crypto asset derivatives will stay in place,” the FCA mentioned on Friday.
Crypto derivatives embody futures, choices and perpetual contracts. The regulator added that it’ll monitor market developments and think about its method to high-risk investments.
Magazine: Ether might ‘rip like 2021’ as SOL merchants brace for 10% drop: Trade Secrets
