The UK’s FCA has proposed lifting the ban on crypto-linked ETNs for retail investors. The decision is currently under consultation and has not yet been finalised. The change isn’t just crazy, it is massively important. It looks like the entire UK crypto environment has just gained some traction, and you can bet that this will put things in motion for those looking to get into crypto.
A Long-Awaited Green Light
Since 2021, the UK has essentially locked down the market for the average person to invest in crypto ETNs – the new product that trampolines along with Bitcoin or Ethereum prices as if they are real-time assets. The reason for concern was the FCA’s worries that consumers didn’t understand what they were and feared that individuals might lose a lot of money.
But here we are today, and with more and more people dabbling in digital assets, they had no choice but to review it again. The proverbial doors are starting to open again. That said, don’t expect it to be free for all: there will still be an awful lot of regulation over how these products are marketed, and all the same risk warnings will be present.
Crypto Ownership Soars in the UK
Cryptocurrency has really boomed in the UK over the past year or so. The FCA undertook a survey, and apparently, around 12% of adults in the UK are currently involved with digital assets, a huge increase from only 4% in 2021. This is not just a fad, but a massive movement, especially among younger people who see digital assets as a legitimate means of wealth creation. Times are changing, and quite rapidly, and interesting to see.
Market Instability Persists
So, crypto is still on its crazy ride. Bitcoin just dropped, and even fell below $101K, and investors are getting worried about the same economic issues it faced before. Ethereum fell too, by over 6% in one day. Investors are blaming anything, from bad market sentiment to hitting those technical resistances. To be honest, it’s the same disarray with larger numbers.
The Rise of Crypto Entertainment
Traditional investments are looking unstable, but crypto gaming, especially crash-style gambling, is growing very quickly. Imagine this: You make your bet, see that multiplier rise, your heart is beating, you’re wondering, “Should I cash out now, or keep going?” It’s like half arcade, half panic attack, and people are loving it.
Many platforms now offer dedicated crash gambling games powered by smart contracts and provably fair algorithms. If you’re sick of watching the ups and downs of the spot market, crash gambling is a weirdly enjoyable alternative to sit back.
The Road Ahead
Just because the FCA has proposed lifting its ban does not mean retail investors are free to go wild. Any platform creating a promotion of a crypto ETN would need to have all the documentation in place and be registered under the Financial Services and Markets Act.
Still, we have cracked the door open, and there are those that are excited, calling it the start of a more open (and hopefully less dodgy) time for crypto in the UK.
For crypto platforms as well as some of the shinier fintech start-ups out there, these changes are both a green light and a blinking red light. There are opportunities ahead, both in terms of venture start-up and consumer protection, and there is ample opportunity with significant pressure. Will the general public see tangible benefits from this? Whether companies act fairly and can make it abundantly clear what they are selling will determine if the public will really know what is going on.