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London-The United Kingdom is expected to raise a ban on a key to cryptographic debt security in order to catch up with the United States and other financial centers when it seems to become a world center for digital assets.
On Friday, the Financial Conduct Authority, the main regulator of the financial services of the United Kingdom, announced a proposal aimed at reversing its ban on offering negotiated tickets in exchange for crypto to retail investors.
Tickets negotiated on the stock market is a type of debt instrument that is linked to one or more specified assets – cryptocurrencies, in this case. In essence, they allow investors to expose themselves to digital tokens thanks to the use of a regulated exchange.
Sales of ETN Crypto to retail investors have been prohibited in the United Kingdom since the FCA implemented a ban in 2019 due to the concerns about the potential damage they put in consumers.
On Friday, however, the FCA said that it proposed to raise the ban on ETN Crypto “to support the growth and competitiveness of the United Kingdom”. A restriction on cryptographic derivatives will remain in place, added the guard dog.
“This consultation demonstrates our commitment to support the growth and competitiveness of the UK crypto industry,” said David Geale, executive director of FCA payments and digital assets in a statement.
“We want to rebalance our approach to risks and lifting the ban would allow people to make the choice to find out if an investment also at high risk suits them, since they could lose all their money.”
“Important step”
Development was quickly praised by cryptographic companies as an important moment for the British British industry is often perceived as being late in the United States, the European Union and other global players with regard to digital assets.
Funds negotiated in exchange for crypto spots have been available in the United States since the Securities and Exchange Commission commission approved rules to allow the creation of the first ETFs linked to Bitcoin at the beginning of last year.
In April, the British government published Legislation project for the cryptography sector In order to make the country a “world leader in digital assets”. The FCA works separately through a Detailed roadmap for consultations and discussion documents in order to implement a regulatory regime for crypto by 2026.
“Until now, the United Kingdom has been an aberrant value on ETN. We hope that this decision will improve consumer protections and we will continue to argue in favor of lifting the ban on retail investors to access highly regulated derivative products,” said Ian Taylor, advisor to the Crypto Trade Body Cryptouk board.
Kraken’s United Kingdom Director General of Kraken, Bivu Das, said that the proposal to approve sales of ETN Crypto to consumers marked a “major stage for the crypto ecosystem of the United Kingdom”.
The FCA “recognizes that the market has matured considerably and that obsolete restrictions no longer serve their planned objective,” added DAS. “Regulatory movements like this are essential if the United Kingdom must remain competitive in the race to direct digital assets.”
