Financial regulators in the United Kingdom are allowing applications for crypto-based exchange-traded notes (ETNs), according to a new announcement.
In a press release on Monday, the UK’s Financial Conduct Authority (FCA) said it has approved the sale of crypto and Bitcoin (BTC) ETNs for professional investors.
ETNs in the UK are defined as bonds issued by financial institutions that track the performance of underlying assets.
According to the FCA, potential crypto retail ETNs will not be available to retail investors as this would be unsafe and ‘not suitable’ for them.
Says the supervisor,
“With greater insight and data resulting from a longer period of trading history, the FCA believes that exchanges and professional investors should now be able to better determine whether cETNs meet their risk appetite.
The FCA continues to believe that cETNs and crypto derivatives are not suitable for retail consumers due to the harm they pose. As a result, the ban on the sale of cETNs (and crypto derivatives) to retail consumers remains in effect.
The FCA continues to remind people that crypto assets carry a high level of risk and are largely unregulated. Those who invest must be prepared to lose all their money.
The FCA is working with government, international partners and industry to develop the UK regulatory regime for crypto assets and lead international standards in this area.”
The news comes as Bitcoin sets new all-time highs, while interest in the king crypto and the digital asset markets in general reach new heights.
BTC is worth $72,314 at the time of writing.
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