UK approval for Bitcoin and Ether ETNs

While the demand of institutional investors in the world for crypto-supported products, especially Bitcoin, is increasing, a new step came from the UK. The FCA, the country’s financial regulator, made a statement claiming that it will not object to requests from licensed investment exchanges for cryptocurrency-backed bonds. The FCA also stated that it will not allow individual investors to access these bonds.

UK approval for Bitcoin and Ether ETNs

On Monday morning, when Bitcoin surged above $71,000, an important announcement came from the Financial Conduct Authority (FCA), the UK’s financial regulator. The institution stated that it will pave the way for crypto-backed ETNs from Approved Investment Exchanges.

ETNs will be open to professional investors, from investment firms to lending companies. The FCA continued to apply its strict rules for individual investors and closed crypto-supported ETNs to this investor group. “Individual investors will not be allowed to enter this area,” the institution said.

The institution also noted that exchanges are fully responsible for taking the necessary measures.

LSE also accept Bitcoin and Ethereum ETNs applications

Following this announcement, the London Stock Exchange announced that it will accept applications for Bitcoin and Ether ETNs as of the second quarter. With this announcement, Bitcoin managed to exceed the $71 thousand and Ether reached the $4000 limit.

The UK is known for having strict rules especially on cryptocurrencies. The FCA also banned cryptocurrency companies from advertising on bus and subway stops.

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