The United Kingdom could finally alleviate its grip on cryptographic investment products. After prohibiting detail access to negotiated tickets in exchange for Crypto (CETS) in 2020, the Financial Conduct Authority (FCA) is currently proposing to raise this prohibition. If they are approved, daily investors in the United Kingdom could exchange CETS, regulated products that give exposure to cryptocurrencies like Bitcoin and Ethereum, through official trading platforms.
This decision comes as global interest in cryptographic investment products continues to grow. Earlier this year, the United States approved several ETF Bitcoin Spot, which have already attracted billions of investments to institutional and detail buyers. Now the United Kingdom is under pressure so as not to late.
The industry says that ETFs should be following
Cryptouk, the first group in the country’s industry, praised the FCA decision but clearly said that it should only be the start. In their official response, they argued that the Crypto ETFs (negotiated funds on the stock market) are a safer and more familiar option for most investors compared to the detention directly of the crypto. ETFs avoid the risk of self-care, often have lower costs and are already widely used in traditional finance.
Companies like 21Shares and UK Coinbase have echoed this feeling, urging regulators to go beyond the CET. They stressed that the limitation of access could push investors to unregulated offshore exchanges, increasing the risks instead of reducing it.
In addition, the 21Shares product transmitter also supported wider access, warning the FCA against drawing the circle so small that British savers are postponed to unregulated offshore platforms. Keith Grose as a UK coinbase called the United Kingdom as a player from the “second engine”. By learning successful models in the United States and Europe, the United Kingdom can implement a clearer framework for regulated cryptographic products. But they also warn that delays could put the United Kingdom in countries like Germany and Switzerland, where detail access to Crypto ETF is already active.
What it means for crypto
The British FCA examines the opportunity to allow retail investors to access negotiated tickets in exchange for crypto (CET), with final rules expected after the summer. Key decisions include the opportunity to develop beyond Bitcoin and Ethereum, and if the Spot Crypto FNB could follow. For the moment, this can offer a regulated means to British savers to obtain exposure to cryptography without manipulating private keys. But regulators and industry emphasize that the risks remain high, with a full potential for volatility.
