- Main event signals regulatory shifts favoring retail access.
- FCA sees this as promoting market competitiveness.
- Experts note enhanced market credibility and liquidity.
The decision enables broader retail access, potentially increasing trading volumes for Bitcoin and Ethereum in the UK.
The Financial Conduct Authority (FCA) of the UK has officially removed the ban on crypto ETPs and ETNs, effective immediately. This realignment with global standards allows UK retail investors access to crypto investment vehicles regulated for safety and security.
Prominent figures, including Duncan Moir of 21Shares, emphasized the importance of regulating access. The FCA aims to mitigate risks while fostering growth within the UK crypto market infrastructure by providing competitive investment opportunities.
The removal of the ban is anticipated to alter market behavior, enhancing transactions involving Bitcoin and Ethereum. Charles Morris from ByteTree noted this as a safer approach for retail investors entering the market.
By lifting the ban, the FCA aligns with countries like the US and Canada, where regulated products are accessible. Laurent Kssis pointed out that this move helps bridge gaps previously facing UK investors.
New investor engagement activities and increased liquidity in markets are expected outcomes. Industry leaders predict additional regulations may emerge, further shaping market integration. The FCA’s decision is expected to drive adoption and interest within both business circles and the general public.
This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK’s crypto industry. We want to rebalance our approach to risk, and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money.”
— David Geale, Executive Director, FCA
