The UK crypto industry has received a regulatory boost from the Financial Conduct Authority (FCA) as the price of Bitcoin continues to climb.
The FCA this week posted an update to its position on listing cryptoasset-backed Exchange Traded Notes (cETNs), stating it would “not object to requests”.
The update represents a slight softening in the position of the financial watchdog, which has consistently called for tighter regulation of cryptoassets.
The FCA warned that cETNs, which are financial instruments that track the value of cryptoassets, would have to meet all the requirements of listing rules and that exchanges will need to “continue to make sure sufficient controls are in place” to protect investors.
The financial regulator added that it believes these crypto investment opportunities are “ill-suited” for retail investors due to the risk of harm, so it will continue to ban the sale of crypto derivatives to consumers.
The update from the FCA follows the decision in the US to approve Bitcoin Exchange Traded Notes (ETFs), which have contributed to the cryptocurrency’s recent surge in value.
Bitcoin reached a record-high value of £56,749.68 on Monday.
Last month, the FCA’s former head of digital assets, Binu Paul, joined CryptoUK – a blockchain trade association – as an independent consultant.
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