LONDON, March 11 (Reuters) – Britain’s financial regulator said on Monday it will not object to requests from recognised investment exchanges to launch UK-listed cryptoasset-backed exchange-traded notes.
Such 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 said in a statement.
Exchanges must ensure orderly trading and proper protection for investors, the FCA said, with crypto exchange-traded notes (ETNs) meeting all the requirements for UK listings.
The FCA said that with greater insight and data from a longer period of trading history, professional investors are now able to better establish whether crypto ETNs meet their risk appetite.
However such products, as well as crypto derivatives “are ill-suited for retail consumers due to the harm they pose,” the watchdog said, adding that the ban on crypto ETNs and crypto derivatives to retail consumers would remain.
