UK regulator to allow crypto exchange-traded notes for professional investors
will now permit recognised investment exchanges to launch crypto-backed exchange-traded notes, the latest regulator to pave the way for digital asset trading products.
Theses products would be only available for professional investors such as investment firms and credit institutions authorised to operate in financial markets, the Financial Conduct Authority (FCA) said in a statement.
However the FCA warned that crypto exchange traded notes (ETNs) — bonds issued by financial institutions that track the performance of underlying assets — pose harm to retail investors.
Exchanges must ensure orderly trading and proper protection for investors, the FCA said, with crypto ETNs meeting all the requirements for UK listings.
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View Details» The crypto market has surged in recent months as regulators globally — which have long warned of the risks from volatile cryptocurrencies such as bitcoin — approve digital asset investment products.
Bitcoin hit a record above $70,400 on Monday, boosted by a flood of cash into spot bitcoin exchange-traded funds approved by U.S.
