The UK's Financial Conduct Authority (FCA) has announced the lifting of the national ban on crypto ETFs, allowing retail investors access to regulated exchanges.
FCA's Regulatory Change
The UK's Financial Conduct Authority (FCA) has made a significant regulatory change by lifting the ban on crypto ETFs, in place since January 2021. This shift addresses market criticism and aligns UK regulations with international standards. David Geale, FCA's Executive Director, stated: "This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK's crypto industry."
Increased Market Access
The announcement marks an improvement in access to the crypto market for retail investors. It is expected to boost liquidity and trading volumes for Bitcoin and Ethereum. The FCA’s decision may also facilitate participation from both institutional and retail investors, increasing capital flow to the sector.
Industry Reactions
Key figures in the industry, like Laurent Kssis and Duncan Moir, recognize this shift as a significant step forward. They underscore the prolonged pressure on the FCA to conform to international regulatory frameworks. The anticipated change is expected to lead to a surge in investments in crypto products related to Bitcoin and Ethereum, also increasing liquidity for associated altcoins and DeFi protocols.
The lifting of the crypto ETF ban in the UK could significantly alter the landscape of the cryptocurrency market, providing retail investors with new opportunities and potentially increasing trading volumes.
