UK lifts crypto ETN ban, gives retail investors the green light

The UK government has lifted its earlier ban on crypto exchange-traded notes (ETNs) because it believes the market has matured and people now have a heightened awareness of crypto ￰0￱ a report dated Wednesday, October 8, the Financial Conduct Authority (FCA) clarified that retail investors can now purchase crypto ETNs via FCA-approved exchanges in the ￰1￱ ETNs are debt instruments that enable crypto investors to engage with a cryptocurrency without directly owning ￰2￱ products are traded like other securities with the actual cryptocurrency safely stored by regulated ￰3￱ adopts a positive outlook towards the crypto industry FCA executive director for payments and digital finance, and managing director of the Payment Systems Regulator (PSR), David Geale, noted that since implementing a ban on retail access to crypto ETNs, the market has undergone a transformation, and these products have become more widely understood and accepted.

Therefore, Geale expressed that it is time to give customers more choices , ensuring that consumer protection guidelines are in place to support ￰4￱ initial ban on crypto ETNs was effectively imposed in January 2021, when the FCA raised concerns about the risks associated with crypto products, arguing that they could harm retail ￰5￱ also highlighted that crypto ETNs lacked a real demand for investment at that ￰6￱ the FCA’s recent decision, several crypto analysts have acknowledged the government’s new positive outlook towards the crypto ecosystem, as it has gradually adopted cryptocurrency over the past few ￰7￱ this shift in attitude, crypto investors are looking forward to a new, favorable set of guidelines in the ￰8￱ takes place after a change of administration in ￰9￱ lifting the ban on crypto ETNs, the FCA has announced that it will maintain its ban on retail access to cryptoasset ￰10￱ has also stated that it will continue to supervise and reassess its stance on risky investments ￰11￱ report points out preference for crypto ETNs in investment Apart from lifting the ban on crypto ETNs, the UK government has also released a policy statement on how these crypto products would be taxed when held in particular tax-efficient investment ￰12￱ for October 8, the government will allow crypto ETNs to be added to registered pension schemes.

Afterwards, at the beginning of April next year, they will grant access to Stocks & Shares Individual Savings ￰13￱ means that individuals in the country will have more tax-friendly investing options for these ￰14￱ a statement, the government highlighted that it is supporting the growing cryptoasset industry in the UK and developing clear regulations to encourage individuals to explore innovation while adhering to consumer protection ￰15￱ these strategies in place, the IG Group has released reports forecasting a 20% increase in the UK crypto market following the reintroduction of crypto ￰16￱ arrive at this prediction, the company conducted thorough research and noticed that 30% of adults in the UK prefer investing in crypto through ￰17￱ to their argument, the main reason behind this is the sense of safety and regulatory oversight these products ￰18￱ demonstrates a significant potential increase from the current crypto ownership levels of 12%, according to the FCA’s latest study, and 25% according to IG’s new report.

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