Latest news with #DavidGeale
Yahoo
15 hours ago
- Business
- Yahoo
Crypto Breakthrough: FCA Considers Lifting Ban for UK Retail
The Financial Conduct Authority (FCA) is proposing to lift the ban on selling crypto exchange-traded products to retail investors in a bid to "support U.K. growth and competitiveness." According to the press release, the U.K. regulator is launching a consultation around allowing individual investors to buy crypto ETPs so long as they are listed on an FCA-approved exchange, such as the London Stock Exchange (LSE). Current regulation permits only professional U.K. investors access to the product class, but that could change as early as September. The 'consultation demonstrates our commitment to supporting the growth and competitiveness of the U.K.'s crypto industry,' commented David Geale, executive director of payments and digital assets at the watchdog. Mhairi Jackson, manager for funds and asset management policy at the FCA, hinted at the U-turn at ETF Stream's recent ETF Ecosystem Unwrapped event. 'As we expand our regulatory perimeter to include crypto assets in the future, we will be thinking about when the right time is to allow retail access to crypto ETNs," she said. European crypto ETPs are generally structured as exchange-traded notes—a form of debt instrument. Because the underlying cryptocurrency collateralises them, ETP providers often describe them as "physically backed." The FCA banned the sale of them as well as crypto derivatives to retail investors in January 2021, warning that if 'consumers invest in these types of product, they should be prepared to lose all their money.' But the FCA's Geale said, 'We want to rebalance our approach to risk, and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money.' The ban on crypto derivatives is to remain in force, but the regulator will 'continue to monitor market developments and consider its approach to high-risk investments.' Laurent Kssis, founder at CEC Capital, a crypto ETP consultancy, said the change in stance was "about time." The FCA has been under "tremendous pressure" to lift the ban in recent years, he added, noting that retail investors can already buy crypto ETPs in other European jurisdictions. The U.S. Securities and Exchange Commission approved spot bitcoin ETFs in January 2024. Duncan Moir, president at 21shares, Europe's largest crypto-ETP provider, said if the ban is removed, 'U.K. retail investors will finally get access to regulated products on regulated exchanges. That is important because, to date, they've been forced to buy cryptoassets directly.' Meanwhile, Charlie Morris, founder and CEO of ByteTree, which has a Bitcoin and gold ETP in conjunction with 21Shares, emphasised that crypto ETPs provide a safe way for retail investors to interact with cryptocurrencies. 'This is fabulous news for U.K. investors who what to engage with crypto and digital assets in a safe and secure manner,' he said. Bitcoin was recently trading at $104,000, representing a 12% year-to-date increase. This article was originally published at sister publication ETF | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
17 hours ago
- Business
- Mint
UK to end ban on retail investors buying crypto exchange-traded notes
(Refiles to remove extraneous word in the headline; no change to text) LONDON (Reuters) -Britain's financial regulator is to remove a ban on consumers buying crypto exchange-traded notes (ETNs), ditching its previous position of wanting to keep them out of the hands of retail investors. The Financial Conduct Authority said on Friday that allowing retail investors to buy ETNs would support growth and competitiveness, in the latest sign that the UK is shifting its approach to crypto as the government seeks to grow the economy and support a digital assets industry. Last year the FCA had approved the launch of crypto ETNs for professional traders but banned retail investors from access, calling the products "ill-suited" because of "the harm they pose". "We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money," David Geale, executive director of payments and digital assets at the FCA, said in a statement on Friday. The proposal will now go out for consultation. Britain in April published draft laws for bringing cryptocurrencies under compulsory regulation for the first time, aligning it with the United States' approach, rather than the European Union, which has built rules tailored to the industry. To be sold to individual consumers, the ETNs will need to be traded on an FCA-approved investment exchange, the regulator said. A ban on retail investors trading cryptoasset derivatives would remain, the watchdog added. (Reporting by Tommy Reggiori Wilkes. Editing by Jane Merriman)
Finextra
18 hours ago
- Business
- Finextra
FCA to lift ban on offering crypto exchange traded notes to retail investors
The Financial Conduct Authority (FCA) is proposing to lift the ban on offering crypto exchange traded notes (cETNs) to retail investors. Similar products are already available in other countries. 0 It would mean cETNs could be sold to individual consumers, rather than just professional investors, in the UK, if they're traded on an FCA-approved investment exchange (a Recognised Investment Exchange or RIE). Financial promotion rules would apply so consumers get information on the risks and would not be offered inappropriate incentives to invest, in the same way as if they bought cryptoassets directly. David Geale, executive director of payments and digital assets at the FCA said: 'This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK's crypto industry. We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money.' This is the latest development as the FCA continues to establish a regulatory framework for crypto. The regulator has outlined its crypto roadmap and recently published proposals on stablecoins as well as other aspects of the regime. The FCA's ban on retail access to cryptoasset derivatives will remain in place. The regulator says it will continue to monitor market developments and consider its approach to high-risk investments. The announcement comes alongside other proposals outlined today in a quarterly consultation paper from the FCA, to further reduce burdens on firms and support economic growth: Simplifying reporting requirements for funds' assessments of value, following feedback to the Consumer Duty Call for Input, which will lead to a significant cost saving for 149 firms who manage more than 3900 funds. Removing more unnecessary data reporting, which will benefit nearly all firms.
Times
3 days ago
- Business
- Times
FCA considers lifting ban on bitcoin ETNs for retail investors
The Financial Conduct Authority is poised to ditch a six-year ban on some crypto-based products for retail investors even as it warned that consumers could still stand to 'lose all their money'. The City watchdog said on Friday that it was exploring the means to allow retail investors to tap into crypto exchange-traded notes, or ETNs. The product has been prohibited for individual investors since 2019. Presently, only professional investors are able to deal in the product, which enables people to trade on the price of a cryptocurrency without owning the underlying asset. It is similar to an exchange-traded fund, which investors use to gain exposure to equities without owning the stock itself. David Geale, the executive director for payments and digital finance at the Financial Conduct Authority, said the plans were emblematic of its 'commitment to supporting the growth and competitiveness of the UK's crypto industry'. He added: 'We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money.' The FCA will take views from the crypto industry over the space of four weeks before lifting the prohibition of ETNs for retail traders. In April, the UK government said it would bring cryptocurrency into the parameters of regulation for the first time, aligning it with the United States and the European Union. The new regulatory framework was designed to 'crack down on bad actors while supporting legitimate innovation', the government said at the time of the announcement. Rachel Reeves, the chancellor, said then of the new regulations: 'Through our 'plan for change', we are making Britain the best place in the world to innovate and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of fintech and protect people across the UK.' The price of bitcoin, the world's foremost cryptocurrency, has been hugely volatile this year owing to President Trump's erratic policymaking. In the first few months of the year, bitcoin rose sharply as traders braced for the Trump administration to launch policies that emboldened the crypto industry. However, these policies have yet to materialise which, alongside Trump's on-again-off-again tariffs, pushed bitcoin down sharply, before a recent rally that pushed it up to a record high of $112,000 last month. On Friday afternoon, one bitcoin could fetch $103,975, representing a 2.38 per cent daily increase.
Yahoo
3 days ago
- Business
- Yahoo
UK Regulator FCA to Lift Ban on Crypto ETNs for Retail Investors
U.K. financial regulator the Financial Conduct Authority (FCA) said it will allow consumers access to crypto exchange traded notes (cETNs), as the watchdog aims at growing digital assets in Britain. The move means cETNs could be sold to individual consumers rather than just professional investors in the U.K., provided these are traded on an FCA-approved investment exchange (a Recognized Investment Exchange or RIE), according to an FCA press release on Friday. FCA pointed out that similar products are already available in other countries. The FCA's ban on retail access to cryptoasset derivatives will remain in place, while the regulator continues to monitor market developments and consider its approach to high-risk investments, the release said. As regulatory regimes are put in place around the world, the U.K. is feeling the need to compete, as evidenced by U.K. government consultations on crypto rules and recent comments from the Chancellor of the Exchequer Rachel Reeves. 'This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK's crypto industry,' said David Geale, executive director of payments and digital assets at the FCA. 'We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money,' Geale said in a statement. The U.K.'s existing financial promotion rules would apply so consumers get information on the risks and would not be offered inappropriate incentives to invest, in the same way as if they bought cryptoassets directly, the FCA said. "This development is fully aligned with the U.K.'s ambition to position itself as a sophisticated jurisdiction in the crypto space," said Diego Ballon Ossio, Partner at Clifford Chance via email. "It will not only unlock exposure to crypto assets for retail investors but stands as signal that the U.K. is open to crypto. More work is needed on the Prudential Treatment of these assets but we are certainly heading in the right direction," he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
