Key Takeaways
- The FCA proposes lifting its ban on Bitcoin ETNs for UK retail traders.
- Spot Bitcoin ETFs stay prohibited underneath present UK regulation.
- The session is open by means of July 31 and contains safeguards like threat disclosures.
The Monetary Conduct Authority (FCA) has proposed lifting its ban on retail buying and selling of exchange-traded notes (ETNs) tied to Bitcoin, marking a significant shift in UK digital asset coverage.
The proposal would allow retail traders to purchase regulated Bitcoin ETNs listed on acknowledged exchanges, such because the London Inventory Trade.
Regulatory replace & shopper safety
Introduced June 6, the transfer is a part of the FCA’s broader regulatory replace geared toward balancing innovation with shopper safety.
Underneath the plan, retail traders could be allowed to entry ETNs if the merchandise meet UK monetary promotion requirements, embrace threat disclosures, and keep away from aggressive incentives.
Reversal of 2021 coverage
The change would reverse a coverage enacted in 2021 that blocked retail entry to crypto derivatives and ETNs.
Nonetheless, the ban on crypto derivatives will stay. FCA govt director David Geale stated the brand new method is designed to “rebalance” threat tolerance by permitting customers extra freedom to make funding choices.
Spot Bitcoin ETFs nonetheless prohibited
Regardless of the shift, spot Bitcoin ETFs stay prohibited within the UK. The FCA emphasised that this proposal doesn’t prolong to identify ETF merchandise like these obtainable within the U.S., comparable to BlackRock’s iShares Bitcoin Belief.
Potential impression on retail traders
If adopted, retail traders might commerce sterling-denominated ETNs already obtainable to skilled traders, comparable to merchandise from 21Shares, WisdomTree, and ByteTree.
Session interval
The session runs by means of July 31 and displays the FCA’s alignment with EU-style ETN frameworks, the place over 300 Bitcoin-linked ETNs are already listed on platforms like Xetra.