The United Kingdom’s digital currency sector is celebrating recent changes to the nation’s regulations concerning digital assets.
According to a report published by the Financial Times (FT) on Thursday (August 7th), this follows the Financial Conduct Authority‘s (FCA) decision last week to reverse its prohibition on providing cryptocurrency exchange-traded products to individual investors.
Industry figures are drawing parallels between this development and the “Big Bang” deregulation of financial markets that took place in 1986, the report noted.
“This holds considerable importance, potentially representing the initial step in a transformative shift within UK financial markets, signaling increased acceptance and integration of digital assets overall,” stated Russell Barlow, CEO of 21Shares, a firm that issues exchange-traded cryptocurrency products.
“Its significance rivals that of the 1986 Big Bang, which aimed to modernize London’s financial district and bolster the UK’s global competitiveness,” he elaborated.
Dovile Silenskyte, Director of Digital Assets Research at WisdomTree, added that the removal of the UK’s restriction on retail access “marks a key stage in the wider incorporation of digital assets into the established financial system.”
The FCA’s recent move, as reported, will enable retail investors throughout Great Britain to acquire Bitcoin or Ether starting October 8th, through regulated, exchange-listed instruments, instead of relying on cryptocurrency exchanges not formally recognized by the regulatory body.
The report clarifies that Exchange Traded Notes (ETNs) are similar to Exchange Traded Funds (ETFs) in that they track an underlying index, are traded on exchanges and are listed publicly.
The FT further emphasizes the FCA’s historical stance of stringent oversight concerning cryptocurrency investments, designed to protect investors against potential fraud and market volatility. While the regulator permitted the listing of crypto ETNs on the London Stock Exchange last year, participation was limited to institutional investors.
In other news concerning crypto regulation, PYMNTS recently reported on the U.S. Securities and Exchange Commission‘s (SEC) efforts to facilitate the integration of digital asset products within traditional financial infrastructures.
This involves “Project Crypto,” a comprehensive SEC initiative aimed at updating existing securities rules and guidelines. This includes provisional guidance suggesting that stablecoins pegged to the U.S. dollar could be considered equivalent to cash, provided that they offer guaranteed redemption mechanisms.
“By defining a specific set of compliance requirements for ‘Covered Stablecoins,’ the SEC is essentially opening the door for these digital assets to serve as regulated payment instruments tied to fiat currency,” PYMNTS stated. “While the path forward might be constrained by various conditions, it represents a potentially navigable route within U.S. commerce for the first time.”