UK Lifts Ban on Crypto Exchange-Traded Notes
- UK lifts retail ban on crypto exchange-traded notes, impacting the market.
- Potential 20% market growth linked to FCA decision.
- ETNs may include assets like BTC and ETH.
The UK’s Financial Conduct Authority has lifted its four-year ban on crypto exchange-traded notes, allowing retail investors to access regulated products tracking cryptocurrencies like Bitcoin and Ethereum.
This move aligns the UK with global standards, potentially boosting its crypto market growth by 20%, enhancing investment options through tax-efficient products.
The UK’s Financial Conduct Authority (FCA) has announced a milestone move by lifting its four-year retail ban on crypto exchange-traded notes (ETNs). This decision could potentially reshape the UK’s financial landscape significantly.
David Geale, FCA’s Executive Director, highlighted that the move acknowledges the market’s evolution and the mainstream understanding of crypto products. Major platforms like the London Stock Exchange and Cboe UK will list these ETNs soon.
The immediate outcome for investors includes access to regulated financial products tracking assets, including BTC and ETH. This access provides a possible boost for the UK’s crypto market, aligning it with other global markets.
Experts note the 20% market growth potential due to retail involvement via ETNs. Financial vehicles like ISAs and pensions may integrate these notes, increasing tax-efficient crypto investment options.
The ban on ETNs was initially implemented in January 2021 due to risks associated with investor protection. With the new regulations, the UK market embraces a more inclusive stance in the global crypto ecosystem.
Analysts highlight that historical trends show increased mainstream capital inflows with ETF and ETN introductions elsewhere. The FCA’s move is expected to set a significant precedent for the UK, impacting $1 trillion in potential investments.
David Geale, FCA’s Executive Director, said, “Since we restricted retail access to crypto ETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring there are protections in place.”
