The United Kingdom is taking a striking step towards a leading position in the crypto world. From 8 October, private investors will regain access to Crypto Exchange-Traded Notes (CETNs), regulated investment products that follow the course of digital assets.
British regulator Relocates Ban from 2021
The Financial Conduct Authority (FCA), the British regulator, announced the decision today in a press statement. A ban from January 2021 is thus abolished. That prohibition was introduced at the time due to concerns about course volatility and the lack of underlying value.
The new course means that retail investors will soon be able to invest in CETNs, a product that has only been available to professional parties so far. The regulator emphasizes that the prohibition on crypto-derivatives, such as futures and options, will remain in force for the time being.
Positive reactions from the crypto sector
The measure leads to broad consent in the industry. Ian Taylor from branch organization Cryptouk calls it “a welcome change”. According to him, the UK was behind other countries and this step ensures a better balance in policy.
Riccardo Tordera from The Payments Association agrees: “The nature of Crypto is that it is accessible worldwide. The earlier ban on Cetn’s limited that openness and obstacled the UK’s ambition to become a global crypto-hub.”
According to Tordera, the policy was too protective and was at the expense of the country’s competitiveness.
Not everyone is convinced
Yet there are also critical sounds. For example, the X account of Wallstreetbets reacted cynically to the news and suggested that the UK has more important things to worry about.
Nevertheless, the decision is broadly seen as an important step forward. Proponents hope that the United Kingdom will resume investors and strengthen its position on the global cryptomarkt.
Source: https://newsbit.nl/verenigd-koninkrijk-heft-verbod-op-crypto-etns-voor-retailbeleggers-op/
