UK u-turn on retail access to crypto ETNs signals push to become crypto hub

Key Points

1. The FCA reversed its ban on retail access to cETNs, effective from October 8, after enforcing it in January 2021 due to concerns over volatility and lack of regulated assets.

2. Industry figures, such as CryptoUK and The Payments Association's Riccardo Tordera, welcomed the move, stating it aligns the UK with other markets and supports its ambition to become a crypto hub.

3. Critics, including WallStreetBets founder Jaime Rogozinski, sarcastically noted the UK's selective tolerance for financial risk, contrasting it with other regulatory stances.

4. The FCA clarified that its ban on retail access to crypto derivatives, such as futures and options, remains in place despite the cETN policy change.

5. The decision reflects a shift in regulatory approach, though the FCA still emphasizes consumer risk awareness and compliance with existing financial regulations.