Main notes
- FCA lifted the ban on Crypto Etns for the UK’s retail investors.
- Service providers must follow consumer protection rules, but the financial services compensation system will not support these products.
- Curd derivatives are still banned, and UK investors are still prohibited from buying investment funds circulating in the United States.
The UK’s financial organizer will soon allow retail investors to buy Crypto Etns on the approved stock exchanges. This represents a shift from previous restrictions, but comes with limits.
This restriction does not include any compensation coverage and a continuous ban on encryption derivatives for retail customers.
Retail investors to reach Crypto Etns for the first time
The decision to allow Crypto Etns to a retail investors is a major change in the UK’s fiscal policy. Financial behavior authority (FCA) will now Allow individuals To buy these products on the UK approved stock exchanges, and end the ban that has been present since 2021.
It should be noted that, so far, Crypto Etns has been only available to professional investors. This has changed earlier this year when FCA allowed approved exchanges to narrate Etns with the support of encryption assets such as Bitcoin
BTC
115 dollars 279
24 hours fluctuation:
2.5 %
The maximum market:
$ 2.29
Folder. 24h:
$ 64.01 b
And the ether
Eth
$ 3 612
24 hours fluctuation:
4.6 %
The maximum market:
435.86 dollars b
Folder. 24h:
$ 39.13 b
.
These lists, from companies such as 21shares, Invesco and Wisdomtree, which were launched on the London Stock Exchange on May. However, trading activity was limited because retail investors are still prohibited from buying.
FCA says it reviewed the market and found that things had changed. The products are now easier to understand, and the market is more stable. David Jill from FCA said this step gives people more options, but they must understand the risks before investing.
It is important to add that at the present time, only some exchanges in the UK can be approved by FCA to provide these ETNS encodes to the public. If things get worse, investors will not get help from the financial services compensation system.
The companies that offer these Etns will need to follow the rules that make sure that buyers are treated fairly. They should clearly explain how products work and detect any risks. FCA said that companies should not make promises that they cannot keep or give a wrong idea of safety.
In relevant news, while FCA imposes encryption rules in the UK, the industry continues to move forward. newly, Standard Charterd launched Bitcoin spot and ETHEREUM trading for institutional customers. This step made the company the first global bank in the UK entering the trading of institutions.
The prohibition of derivatives is still in effect as the UK plans
While FCA opened the door to Crypto Etns, it keeps its ban on encryption derivatives for retail users. This means that products such as future contracts or options based on encryption are still prohibited from the general public.
The organizer says it will continue to watch the market to determine whether more changes are needed. Currently, the focus is to allow access to the most simplified products to understand and fluctuate other encryption tools.
The UK is also broader bases for the encryption sector. These areas such as stablecoins, exchange, lending and tricks will be covered. Earlier, FCA UK Call On the rules of stablecoins and coding custody.
The UK’s financial organizer also said that The organizational framework It is expected to be implemented by 2026. However, the current step gives a clear indication that the country will keep pace with others like the United States, Canada and parts of Europe.
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Slip: Coinspeaker is committed to providing unbiased and transparent reports. This article aims to provide accurate and timely information, but it should not be considered financial or investment advice. Since market conditions can change quickly, we encourage you to check your information and consult with a professional before making any decisions based on this content.
Benjamin Jodfrey is a blockchain lover and journalist who enjoys writing about the real life applications of Blockchain technology and innovations to pay public acceptance and complementarity all over the world for emerging technology. His desire to educate people about encrypted currencies inspire his contributions to the media and famous sites in Blockchain.
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