The UK’s Financial Conduct Authority (FCA) is set to reverse a ban on records exchanged by the crypto (ETN) exchange for retail investors conducted in 2019.
According to a notice of August 1, the UK’s guardian is lift A prohibition on retailing retail in Crypto ETNs starting Wednesday, provided they have been exchanged with an “FCA-approved, exchange of investment based in the UK.” Unlike funds exchanged (ETF), which are still banned in the UK for retail investors, the ETNs represent debt security security tied to crypto and have not been backed by any underlying properties.
Upon raising the ban, companies with UK operations weigh on what the regulatory change for retail investors means. Blackrock, the largest managing management company in the world, has been reported Looking On ways to offer an Ishhares Bitcoin exchange product to prepare for retail trade on or after October 8.
Bitwise CEO Hunter Horsley, whose European operations of the company are headquarter in London, Says In X that he is “excited to serve more investors in our European home market for a long time.”
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“Until now, the UK has been an outlier in ETNs,” Ian Taylor, board advisor at the Digital Assets Trade Association Cryptouk, told Cointelegraph. “We hope that this move will improve consumer protection and we will continue to make the case for lifting the prohibition on retail investors from accessing high-regulated derivative products.”
According to a notice in August from the FCA, any asset manager planning In order to offer ETN trade to UK investors, they need to be listed in a “recognized investment exchange.” The decision complied with consultations with companies, trade associations, and consumer groups.
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Companies’ offerings have been reported delayed
Companies with operations in the UK, such as coinshares and bitwise, can offer products exchanged exchange with exposure to digital properties. However, financial times reported The retail investor can wait up to a week before the trading, in part just because the FCA only begins to accept prospectuses on September 23, two weeks before the ban is raised.
The regulator is likely to check offering from companies and follow any potential comments or concerns.
Like Friday, the FCA has not made motions suggesting planning to lift a similar ban on Crypto’s ETFs or derivatives for investors.
“While some respondents have called for a revenue access to Cryptoasset ETFs, ETFs sold to UK investors cannot invest directly in cryptoassets under our current regulatory framework for funds,” FCA said in August’s notice that raised the ETN ban. “This outline needs to be updated before investors can access cryptoasset ETFs.”
In contrast, the Cryptocurrency spot tied to the ETFs has been available for trading in the US since approved by the Securities and Exchange Commission in January 2024. The agency is currently running restrictions after US lawmakers failed to pass a bill to fund the government beyond October 1, limiting its ability To check any Crypto ETF.
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