The United Kingdom’s Financial Behavior Authority (FCA) will soon reverse a prohibition of notes quoted in cryptocurrency exchange (ETN) for retailer investors promulgated in 2019.
According to a notice of August 1, the Guardian Dog of the United Kingdom will raise the prohibition of retail access to Crypt Etns from Wednesday, provided that they are negotiated with an “investment exchange based in the United Kingdom” approved by the FCA “. Unlike the funds quoted in the stock market (ETF), which are still prohibited in the United Kingdom for retail investors, ETN represented debt values linked to crypto and not backed by any underlying active.
With the lifting of the ban, companies with operations in the United Kingdom have intervened in what regulatory change could mean for retail investors. According to the reports, Blackrock, the world’s largest asset management company, is looking for ways to offer its product quoted in Ishares Bitcoin to prepare for retail trade from October 8 or later.
The CEO of Bitwise, Hunter Horsley, whose European operations of the company are based in London, said in X that it was “excited to be able to serve more investors in our local market in Europe finally.”
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“Until now, the United Kingdom has been an atypical case in Etns,” Cointegraph Ian Taylor, an advisor to the Cryptouk digital asset association, told Cointelegraph Ian Taylor. “We hope that this movement improves consumer protections and we will continue arguing the prohibition that retail investors access highly regulated derived products.”
According to an August notice of the FCA, any asset manager who plans to offer ETN trade to retail investors in the United Kingdom had to have them quoted in a “recognized investment exchange.” The decision followed consultations with companies, commercial associations and consumer groups.
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According to reports, companies were delayed
Companies with operations in the United Kingdom, such as Coinshares and Bitwise, will be able to offer products quoted in the stock market with exposure to digital assets. However, Financial Times reported that retail investors could have to wait until a week before being able to trade, partly due to the FCA that only began accepting prospects on September 23, two weeks before lifting the ban.
It is likely that the regulator has to review the offers of the companies and monitor with any potential comments or restlessness.
Until Friday, the FCA had not made movements suggesting that it was planning to lift a similar prohibition of ETF or cryptographic derivatives for retail investors.
“While several respondents requested retail access to the ETF cryptoSesestos, the ETF marketed for retail investors in the United Kingdom cannot invest directly in crypto -setes under our current regulatory framework for funds,” said the FCA in its August notice raising the prohibition of ETN. “This framework would need to be updated before retail investors can access ETF Cryptasset.”
On the contrary, the ETF tied to spot cryptocurrencies have been available for trade in the US. Since it was approved by the stock exchange and securities commission in January 2024. The agency is currently operating with restrictions after US legislators failed to approve a bill to finance the government beyond October 1, limiting its ability to review the ETFs of Cry.
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