UK FCA to enable retail investors to buy Bitcoin and crypto ETN

According to a press release on Friday, the UK’s top financial regulator, Financial Conduct Authority (FCA), is set to open the door for retail investors to access Crypto Exchange-Traded Notes (CETNS) after restricting concerns with Crypto Exchange-Traded Notes (CETNS) for more than three years.

David Gill, executive director of payments and digital finance at the FCA, said in a statement that regulators are responding to positive developments in the crypto market.

“Because they restricted retail access. cetns, The market has evolved, products are becoming more mainstream and better understood,” Geale said. There is protection In place. This should mean that people get the information they need to assess whether the level of risk is right for them. ”

The new rules require CETN to be traded in FCA-approved UK-based investment exchanges known as the Accredited Investment Exchange (RIE). Financial Promotion Rules manage these products to ensure that consumers receive appropriate information and prevent inappropriate investment incentives.

Companies that provide these products to retail investors must comply with consumer tax requirements, but investments are not subject to the Financial Services Compensation Regime (FSC).

The regulatory update will follow the FCA’s March 2024 decision, allowing accredited investment exchanges to create UK-registered market segments for professional investors. Agents maintain a ban on retail access to crypto derivatives and continue to monitor market development.

The change represents the latest developments in the FCA’s ongoing efforts to establish a regulatory framework for Crypto assets in accordance with recently published proposals on Stablecoins and other aspects of the administration.