The UK’s Financial Conduct Authority (FCA) has lifted its ban on crypto exchange-traded notes (cETNs) for retail investors, effective October 8. This decision, which reverses a prohibitive stance taken in January 2021 due to concerns over volatility, represents a significant shift in the UK’s regulatory approach to cryptocurrencies. The FCA stated the market has evolved, allowing for a better understanding of crypto-related products. Industry leaders, including Ian Taylor from CryptoUK and Riccardo Tordera from The Payments Association, welcomed the reversal, as it enables individuals to make informed choices about their investments. They argue the previous restrictions hindered the UK’s competitiveness in the global crypto landscape. However, while cETNs will now be accessible, the FCA reaffirmed that the ban on crypto derivatives, including futures and options, remains in effect, as these products pose higher risks. The announcement has sparked mixed reactions, with some critics sarcastically commenting on the inconsistency of UK financial policies.

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