The UK’s monetary regulator lifted a ban on crypto exchange-traded notes (cETNs) for retail buyers in a transfer welcomed by trade leaders as a step towards aligning the UK with world crypto markets as a digital asset hub.
On Friday, the UK’s Monetary 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 reputable funding want.”
Lifting the cETN ban displays a change within the regulator’s method to crypto property. In a press release, an FCA government stated the choice mirrored how the market had advanced and the way crypto-related merchandise are higher understood.
Trade 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.
Group reacts to FCA lifting the ban on crypto ETNs
“We’re delighted to see this reversal,” stated Ian Taylor, board adviser at CryptoUK and chief working officer of HT Digital. “Till now, the UK has been an outlier on ETNs. This variation displays the progress we’ve made towards introducing a extra proportionate method to client danger.”
Taylor informed Cointelegraph that CryptoUK, a commerce affiliation for the digital asset trade, 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 trade physique, The Funds Affiliation, 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 possibilities of changing into a worldwide crypto hub.”
Tordera informed Cointelegraph that the FCA’s determination permits people to “make their very own decisions at their very own danger.”
He stated limiting entry to the cETNs had put the UK at a drawback, undermining its world competitiveness.
“It is a welcome transfer,” he added. “The FCA ban was extraordinarily protecting and was already smoothed when skilled buyers had been allowed entry final 12 months.”
Whereas some welcomed the transfer, skeptics additionally chimed in. WallStreetBets founder Jaime Rogozinski summed up the second with sarcasm, saying, “Britain loves monetary danger —simply not the type that entails, say, greens or an industrial coverage.”
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Crypto derivatives stay banned
Whereas 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 said on Friday.
Crypto derivatives embrace futures, choices and perpetual contracts. The regulator added that it’ll monitor market developments and contemplate its method to high-risk investments.
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