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UK Watchdog Eases Crypto-Backed ETN Restrictions

AS UK authorities ease Crypto-Backed ETN restrictions, now professional investors will be able to trade crypto-backed exchange-traded notes (ETNs) that the country’s authorized investment exchanges (RIEs) offer.

Jay Hicks



UK eases crypto trading

The Financial Conduct Authority (FCA) of the UK has declared permission for the pro investors to trade crypto ETFs. According to this decision, professional investors can now trade crypto-backed exchange-traded notes (ETNs) that the country’s authorized investment exchanges (RIEs) offer. The regulatory organization unveiled the respective decision on the 11th of this month.

UK’s FCA Allows Pro Investors to Interact with Crypto-Backed ETNs

This development indicates a huge move toward the integration of crypto-related things into the country’s regulated financial market. Prominent figures in the industry have generally appreciated this decision. They view this as an optimistic step for the wider adoption of cryptocurrency. Nonetheless, apprehensions linger concerning the exclusion of retail investors from reaching such financial products.

Within the present regulatory conditions in Europe, the provision of exchange-traded funds for individual assets is strict. In this respect, Ether, Bitcoin, and other such assets’ ETF offerings are experiencing a ban. As a result of this, ETNs play the role of a supported exchange-traded product in the UK and the European Union. With the approval of the FCA, conventional finance entities and traders in the UK may shortly access crypto-linked financial products.

Also Read: European Investors Eye Crypto ETFs Amid

The FCA is cautiously moving forward toward authorizing crypto. Nonetheless, the authorities have ambitions to make the jurisdiction a worldwide hub for crypto technology. However, the regulator’s decision to allow just pro-investors for ETNs denotes its reluctance to adopt wider retail participation. Although industry insiders welcome the respective move, some are in favor of implementing more inclusive actions.

The Regulator May Revisit Its Viewpoint on Permitting ETN Access for Retail Investors

KR1’s co-founder “George McDonaugh” stressed the significance of inviting more entities into the country’s market. As per him, this would fulfil the UK’s ambition to emerge as a worldwide crypto hub. Despite the present prohibition, there is still some optimism within the market that the regulator will revisit its position viewpoint on retail investors for crypto ETNs.

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