UK Crypto Ban Lifted: Bitcoin ETNs Return After 4-Year Hiatus! 🚀

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Key Takeaways

What is a Bitcoin ETN?

An ETN is a debt instrument that tracks crypto prices, letting investors gain exposure without owning the actual coins. Basically, it’s like dating crypto from a distance-no messy transactions, just vibes. 💃

What is the Bank of England doing about stablecoins?

It plans to allow exemptions to holding limits for firms and permit stablecoins as settlement assets in its Digital Securities Sandbox. Because why not let crypto play in the sandbox? 🏗️

The United Kingdom is reopening the door for retail investors to access crypto products, as the Financial Conduct Authority (FCA) lifts its 2021 ban on Bitcoin [BTC] exchange-traded notes (ETNs). After four years of awkward silence, it’s finally saying, “Sure, let’s pretend this is a normal market.” 😅

Bitcoin UK: FCA lifts ban on ETNs for retail investors

Starting the 8th of October, retail investors in the UK can access ETNs linked to Bitcoin or Ethereum [ETH], provided they are listed on a recognized exchange such as the London Stock Exchange. Which, for some reason, still looks like it was designed in 1997. 🕶️

But, these products must comply with strict listing, disclosure, and distribution rules, offering regulated exposure without requiring direct crypto ownership. Because nothing says “fun” like paperwork. 📄

For those unaware, an ETN is an unsecured debt instrument that tracks an asset’s price. While investors gain exposure to Bitcoin’s performance, they do not hold the asset itself. It’s like investing in a ghost-hauntingly profitable? 👻

Needless to say, the move has been welcomed by the crypto industry as noted by Susie Violet Ward, CEO of Bitcoin Policy UK, who said,

“Access matters, and lifting the ETN restriction is a welcome step in the right direction. What is important now is that the UK builds on this momentum.”

Bank of England puts limits on stablecoin

Meanwhile, the UK’s Bank of England is signaling a more flexible approach to digital assets. BoE plans to grant exemptions to proposed limits on stablecoin holdings. Because why let a little thing like financial stability get in the way of progress? 🤷‍♂️

According to Bloomberg, certain firms, including crypto exchanges that need to hold significant stablecoins for liquidity and settlement, may qualify for these waivers. Which means the Bank is finally admitting that crypto isn’t just for teenagers and libertarians. 🧓

The Bank also plans to allow the use of stablecoins as settlement assets within its Digital Securities Sandbox, providing a controlled environment for testing blockchain-based issuance and trading. A sandbox where grown-ups can play with digital money. How whimsical. 🧸

The uncanny rise in stablecoin

These changes come as the U.S. GENIUS Act establishes clear rules for dollar-backed stablecoins, setting a competitive benchmark. Genius, indeed. 🤯

Meanwhile, a new contender has emerged on the international stage, and that is China. Once known for strict crypto bans, the country is now re-entering the market through Hong Kong, with a Central Asia-based issuer, AnchorX, unveiling AxCNH, the world’s first stablecoin pegged to the offshore Chinese Yuan (CNH). Because why not let the dragon dance in the crypto ballroom? 🐉

Therefore, as the stablecoin ecosystem evolves, the UK faces mounting pressure to adapt quickly or risk losing ground in a market poised for trillions in global payments. If the UK doesn’t hurry up, it might as well start burning crypto cash to keep warm. 🔥

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2025-10-09 06:05