The UK’s refusal to approve retail access to cryptocurrency exchange traded products is drawing criticism as other major global markets embrace the trend. While the US, Europe, Australia, Brazil, and Canada have greenlit spot bitcoin ETFs, the UK’s continued resistance further isolates the country from the growing market.
The Impact of FCA’s Ban on Crypto ETPs
The Financial Conduct Authority’s ban on the sale of cryptocurrency-related ‘derivatives’ to UK retail investors has contributed to the UK’s unmatched stance on crypto ETFs. This regulatory move, made in 2021, has contradicted Prime Minister Rishi Sunak’s vision of the UK as a crypto hub and has resulted in the UK missing out on the recent high-profile launches of spot bitcoin ETFs on Wall Street.
“The UK’s stance on crypto ETPs has isolated retail investors, limiting their exposure options. ”
Growing Calls for UK’s Reassessment of Crypto ETPs
Industry experts and investment platform representatives have voiced concerns about the impact of the ban, emphasizing that UK retail investors are left with limited options for exposure to cryptocurrencies. Calls for a reassessment of the UK’s position on crypto ETPs have grown louder following the recent US launches, indicating a potential shift in the future regulatory landscape.
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