UK regulator FCA eases requirements for crypto sector
UK regulator FCA eases requirements for crypto sector
Previously, the UK's Financial Conduct Authority (FCA) said it had not changed its mind and considered cryptocurrency ETPsq and crypto derivatives unsuitable for UK users. The FCA's ban on the purchase of cryptocurrency ETPs by investors sparked a negative reaction from the community.
As a result, the UK regulator softened its critical stance on cryptocurrency exchange-traded products (ETPs), leading to an influx of cryptocurrency ETF providers into the country. At the same time, the regulator said that only professional investors would be allowed to participate in ETF trading, CoinGape reported.
The regulator's decision marks an important moment for the country compared to its previous restrictive policies, but for now, the crypto community continues to watch the implications of such a move. The ban on retail investors buying new cryptocurrencies also remains in place.
The FCA has decided not to oppose appeals by trading venues such as the London Stock Exchange (LSE) and Cboe UK to list cryptocurrency ETPs. Currently, major mutual funds and crypto ETF providers have entered the UK market to offer their crypto products. Mutual funds, credit and insurance companies, and pension funds are looking to participate in the purchase of cryptocurrency ETPs.
CoinShares, WisdomTree, and VanEck are among the many cryptocurrency ETF providers looking at the UK market.
"We look forward to discussing listing terms with the LSE, assessing their requirements, and discussing the prospects for our products," said CoinShares spokesman Townsend Lansing.
WisdomTree also said that listing cryptocurrency ETPs on the LSE would be more beneficial for UK professional investors. "We are working with the FCA and the LSE to explore these options."
According to VanEck spokesman Menno Martens, the FCA's decision is a "very positive development." The firm is now considering listing cryptocurrency ETPs in the UK.
Retail investors are still free to buy cryptocurrencies on exchanges, contrary to the aforementioned stance of the British regulator.
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