The UK government’s proposal for a Consumer Duty on financial services could create hurdles for retail investors looking to gain access to cryptocurrency exchange-traded funds (ETFs), even if approval for such products is granted by regulators.
Impact of the Consumer Duty on crypto ETF approval
Although the approval of crypto ETFs in the UK is currently seen as unlikely due to concerns over investor protections, the introduction of the Consumer Duty could further complicate the process if these products were to be approved in the future.
“The introduction of the Consumer Duty could complicate retail access to crypto ETFs. ”
Challenges in accessing crypto ETFs for retail investors
The Consumer Duty aims to strengthen consumer protection in the financial sector and could potentially require additional requirements or safeguards for the sale of crypto ETFs to retail investors, making it more challenging for these investors to access such products.
