dailyhodl.com
Financial regulators in the United Kingdom are allowing applications for crypto-based exchange-traded notes (ETNs), according to a new announcement.
In a Monday press release, Britain’s Financial Conduct Authority (FCA) said that it has approved the sale of crypto and Bitcoin (BTC) ETNs for professional investors.
ETNs in the UK are defined as bonds issued by financial institutions that track the performance of underlying assets.
According to the FCA, any potential crypto retail ETNs will not be available for retail investors as it would be unsafe and “ill-suited” for them.
Says the regulator,
“With increased insight and data due to a longer period of trading history, the FCA believes exchanges and professional investors should now be able to better establish whether cETNs meet their risk appetite.
The FCA continues to believe cETNs and crypto derivatives are ill-suited for retail consumers due to the harm they pose. As a result, the ban on the sale of cETNs (and crypto derivatives) to retail consumers remains in place.
The FCA continues to remind people that cryptoassets are high risk and largely unregulated. Those who invest should be prepared to lose all their money.
The FCA is collaborating with government, international partners and industry to develop the UK’s cryptoasset regulatory regime and lead international standards in this space.”
The news comes as Bitcoin sets new record highs while interest in the king crypto and the digital asset markets, in general, reaches new heights.
BTC is worth $72,314 at time of writing.