UK’s FCA lifts ban on crypto ETNs for retail traders
The UK’s Monetary Conduct Authority (FCA) has proposed lifting its ban on providing cryptocurrency exchange-traded notes (ETNs) to retail traders.
In a June 6 announcement shared with Cointelegraph, the FCA stated the proposed change would permit particular person customers to entry crypto ETNs, offered they’re listed on an FCA-recognized funding trade.
“We need to rebalance our method to threat, and lifting the ban would permit individuals to make the selection on whether or not such a high-risk funding is true for them, given they may lose all their cash,” stated David Geale, govt director of funds and digital belongings on the FCA.
Diego Ballon Ossio, companion at British regulation agency Clifford Probability, stated that the transfer “is absolutely aligned with the UK’s ambition to place itself as a classy jurisdiction within the crypto house,” including that it “won’t solely unlock publicity to crypto belongings for retail traders however stands as sign that the UK is open to crypto.”
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FCA laborious at work on crypto regulation
The FCA is at present engaged on a brand new iteration of its crypto regulatory framework. In late Might, the regulator requested public suggestions on proposed rules for stablecoins and cryptocurrency custody.
The continuing efforts additionally comply with the latest revelation by UK Chancellor of the Exchequer Rachel Reeves of plans for a “complete regulatory regime” aimed toward making the nation a frontrunner within the crypto sector.
Current experiences additionally point out the necessity for such measures, contemplating that the UK is main the world in growing cryptocurrency possession amongst its inhabitants in 2025, outpacing economies together with the US.
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Crypto political donations alarm UK lawmakers
In the course of the June 5 UK Home of Commons debate, Cupboard Workplace Minister Pat McFadden stated that “it’s completely proper that as finance evolves, so too should the principles now we have to make sure transparency and probity in elections.” Member of Parliament Sarah Olney raised issues over political events accepting crypto donations:
“Members can have seen that some political events have begun accepting cryptocurrency donations — far be it from me to recommend that this is likely to be an try and dodge the transparency necessities for donations.“
She additional highlighted the necessity to guarantee “that donations that don’t come from a permissible or identifiable supply have to be returned.” Her feedback adopted a June 4 announcement by Nigel Farage, chief of the Reform UK celebration, who lately introduced that the celebration is accepting cryptocurrency contributions from eligible donors.
“[A]s of now, we’re the primary political celebration in Britain who can settle for donations in Bitcoin and different cryptocurrencies,” stated Farage. “We’re manner behind you in America, however as of now, individuals with Bitcoin may give us cash offered they’re eligible.”
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