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The British financial regulator FCA has dramatically changed its policy, lifting the ban on crypto ETNs for ordinary investors. Since October 8, the doors for these tools have been opened again, and the restrictions that have been in effect since the beginning of 2021 are being archived. At that time, the FCA motivated its move by the "excessive volatility" of digital assets and uncertainty about their usefulness. Now, the FCA believes that the cryptocurrency market has become more mature, and investors are better versed in the crypto market and its risks.

This news caused quite a stir. Ian Taylor, who advises CryptoUK and holds a senior position at HT Digital, is clearly pleased with what has happened. He said more than once that because of the FCA's position, the UK looked strange compared to other countries where ETNs are available to everyone. Taylor considers these tools to be very useful, calling them a "reliable guide" to the crypto world, with which you can monitor prices without bothering with direct ownership of cryptocurrencies.

According to Riccardo Torder of The Payments Association, the old restrictions hindered the development of London as a global crypto hub. He stresses that digital assets do not recognize borders, and artificial obstacles have only harmed the UK. Tordera is confident that the FCA's decision demonstrates respect for people's decisions, but at the same time does not forget about the possible risks.

Jaime Rogozinski, founder of WallStreetBets, sarcastically remarked that the British authorities "like risk, but only according to their own rules of the game." The FCA immediately stressed that loosening regulation does not mean complete freedom of action. The ban on crypto derivatives (futures, options and perpetual contracts) for retail investors remains in force. The regulator still considers them too risky for beginners. The FCA intends to carefully monitor the market situation and is ready to tighten the rules if there is a threat to stability.

ETN approval is, of course, a plus for the industry, but it looks more like a neat trial step rather than a decisive openness. The UK seems to be trying to catch up with players like the EU and the UAE, which are actively promoting their crypto businesses. I wonder if this "green light" will be enough for ETN to re-engage London in the struggle for leadership in the digital space, or is it just a polite, but a little belated nod towards development?