The Financial Conduct Authority (FCA) of the United Kingdom announced a plan to live its current restrictions on retail access for the Crypto Exchange-Trad notes (CETNS), opening a section of the digital asset market reserved for professional investors.
This decision marks an important policy change as the regulator seeks to the blance section with the increasing demand for regulating crypto investment products.
Market development regulator indicates revaluation
In a statement released on Friday, the FCA said that the RTAL Investors will be able to trade CETN on the recognized investment exchange (RIES) approved by the Authority.
These products release loan securities by financial institutions, designed to track the performance of cryptocurrency by reducing fees and expenses.
Moving UK aligns the UK with other courts with member states of the US, Canada, Hong Kong, and several European Union, where similar products are already available to organuel investors already.
The latest station of FCA follows a counseling process launched earlier this year, which the regulator proposed to allow retail access to these products.
David Gale, the Executive Director of Payment and Digital Finance in FCA, no, that the Crypto market had significant changes that Sinnness was the first intoduppd.
“Since we have banned retail access to CETNS, the market has developed, and the products are more important and better mainstream,” Geele said, adding:
In its light, we are providing more options to consumers, which ensure that there are security in place. This should mean that they need to assess that the leadership of the risk is correct for them.
While CETNS offers indirect risk for crypto assets, they differ from US Spot Crypto ETF, which directly waving the underlying assets.
The FCA highlighted that these products would be presented in the form to change the financial promotion rules, which is a clear displacement for investors for prior -contemporary marketing and passing for misleading marketing. However, they will not come under the Financial Services Compensation Scheme, which means that investors are not preserved in the issue of issuing files.
Consumer protection and ongoing restrictions
Despite the regulatory updates, the FCA maintained retail on retail on other high -risk crypto derivatives, such as foot and digital assets. For the authority, these products pose a greater risk of significant losses for non-professional investors.
The regulator also emphasized that UK retail customers are unable to invest directly in US Spot Crypto ETFs or Simila offshore products due to existing rules.
Firms offering CETN will be requested to follow the consumer duty Framework, which binds the provisions of giving fair and transparent results to the customers. FCA warned potential investors to understand the riscs before taking decisions, especially given the instability of the cryptocurrency markets.
The image created with a dull-E, chart from the tradingview
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