The UK is facing isolation in the global market as one of the few major economies reluctant to approve retail access to cryptocurrency exchange traded products. Major markets like the US, Europe, Australia, Brazil, and Canada have embraced spot bitcoin ETFs, highlighting the UK’s divergence from the global trend.
Impact of the FCA’s Ban
The Financial Conduct Authority’s ban on cryptocurrency-related derivatives to UK retail investors in 2021 has been a defining factor in the UK’s position. The ban, motivated by concerns about leveraged products and volatility, has prevented small investors in the UK from purchasing listed cryptocurrency products available elsewhere.
“The UK’s divergence from the global trend highlights its cautious approach to cryptocurrency. ”
Demand for Crypto Exposure in the UK
Industry figures and investment platforms in the UK are observing a growing demand for crypto exposure, prompting discussions on the need for a reassessment of the FCA’s position. However, regulatory concerns about the integrity, volatility, and links to financial crime associated with cryptoassets continue to shape the UK’s cautious approach.
Read more here at https://www.ft.com/content/df0a8ab8-0c1e-495b-9983-729ead67b73d
