Moving to UK U-turnpush on retail access to Crypto ETNS signals

As a step towards strengthening the country’s position as a hub for digital assets to fit the global crypto market, UK financial regulators have lifted the ban on Crypto Exchange Supervision Notes (CETN) for retail investors to move welcomed by industry leaders.

On Friday, the UK Financial Conduct Authority (FCA) overturned a ban on retail access to CETNS as regulatory changes took effect from October 8th. The ban came into effect in January 2021, citing extreme volatility and “the lack of need for legitimate investment.”

CETN’s prohibition reversal reflects a shift in regulators’ approach to crypto assets. In a statement, the FCA executive said the decision reflects how the market has evolved and how crypto-related products are better understood.

With the FCA lifting the ban, onlookers and industry stakeholders shared their thoughts on development. Some welcomed the move as a step towards progress, while others used satire to criticize Britain.

Community responds to FCA lifting the ban on crypto ETNs

“We are committed to providing a range of services to our clients,” said Ian Taylor, board advisor for Cryptouk and Chief Operating Officer at HT Digital. “To date, the UK has been an outlier for ETNS. This change reflects progress towards implementing a more proportional approach to consumer risk.”

Taylor told Cointelegraph that Cryptouk, the industry association for the digital asset industry, is lobbying for more comprehensive access to regulated products such as ETN, which tracks the performance of crypto assets without needing direct ownership.

Ricardo Tordella, director of policy and government relations for the UK-based payments industry, reiterated Taylor’s optimism.

“The essential nature of cryptography means that everyone can access it from anywhere. The FCA prevented retail access to certain crypto products from becoming the UK’s global crypto hub.”

Tordera told Cointelegraph that the FCA decision allows individuals to “make their own choices at their own risk.”

He said restricting access to CETNS puts the UK at a disadvantage and undermines its global competitiveness.

“This is a welcome move,” he added. “The ban on the FCA was extremely protective and it was already smoothed out last year when professional investors were granted access.”

Skeptics also cried out while some welcomed the move. “The UK just loves financial risk, not a variety that includes vegetables or industrial policy, for example,” said Jaime Rogoffinski, founder of Wall Street Bet.

sauce: Jaime Rogosinski

Related: UK Crypto wants to stall, but there are “symptoms of encouragement”

Cryptographic derivatives remain prohibited

The FCA overturned the CETN ban, but regulators have made it clear that crypto derivatives are still banned.

“The ban on retail access to crypto derivatives remains ongoing,” the FCA said Friday.

Crypto derivatives include futures, options and permanent contracts. The regulator added that it will monitor market development and consider approaches to risky investments.

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