The United Kingdom Financial Regulatory The Financial Behavior Authority (FCA) said it will allow consumers to access the negotiated notes (CETN) of cryptographic exchange (CETNS), since the control agency aims to cultivate digital assets in Britain.
The movement means that CETN could be sold to individual consumers instead of only professional investors in the United Kingdom, provided that they are negotiated in an investment exchange approved by the FCA (an investment exchange or recognized RIE), according to a Press statement from the FCA on Friday.
FCA said that similar products are already available in other countries. The prohibition of the FCA of retail access to Cryptoasset derivatives will remain in force, while the regulator continues to monitor market developments and consider its approach to high -risk investments, according to the statement.
As regulatory regimes are implemented worldwide, the United Kingdom feels the need to compete, as evidenced by government consultations of the United Kingdom on cryptographic rules and recent comments of the Foreign Minister of the Rachel Reeves.
“This consultation demonstrates our commitment to support the growth and competitiveness of the cryptographic industry of the United Kingdom,” said David Geale, executive director of Payments and Digital Assets in the FCA.
“We want to rebalance our risk approach and lifting the ban would allow people to make the decision to if a high -risk investment is adequate for them since they could lose all their money,” Geale said in a statement.
The existing financial promotion rules of the United Kingdom would apply so that consumers obtain information about the risks and inappropriate incentives would not be offered to invest, in the same way that if they buy cryptoassets directly, said the FCA.
“This development is totally aligned with the ambition of the United Kingdom to position itself as a sophisticated jurisdiction in the cryptographic space,” said Diego Ballon Ossio, a partner of Clifford Chance by email.
“Not only will it unlock exposure to encryption assets for retail investors, but indicates as a sign that the United Kingdom is open to cryptography. More work is needed in the prudential treatment of these assets, but we certainly go in the right direction,” he said.
