Tech
Regulatory boost for UK cryptocurrency sector as Bitcoin surges
The UK’s cryptocurrency industry has received a regulatory boost from the Financial Conduct Authority (FCA) as the price of Bitcoin continues to rise.
The FCA this week published a update to its stance on the listing of cryptocurrency-backed Exchange Traded Notes (cETNs), saying it “will not oppose the requests.”
The update represents a slight softening of the position of the Financial Supervisory Authority, which has consistently called for stricter regulation of cryptoassets.
The FCA warned that cETNs, which are financial instruments that track the value of cryptoassets, will need to meet all listing rule requirements and that exchanges will need to “continue to ensure that sufficient controls are in place” to protect investors.
The financial regulator added that it believes these cryptocurrency investment opportunities are “unsuitable” for retail investors due to the risk of harm, so it will continue to ban the sale of crypto derivatives to consumers.
The FCA update follows the United States’ decision to approve Bitcoin Exchange Traded Notes (ETFs), which have contributed to the cryptocurrency’s recent rise in value.
Bitcoin hit a record high of £56,749.68 on Monday.
Last month, the FCA’s former head of digital assets, Binu Paul, has joined CryptoUK – a blockchain trade association – as an independent consultant.