British investors may soon be able to trade Bitcoin exchange-traded notes (ETNs), following a potential regulatory shift by the Financial Conduct Authority. Simultaneously, the Bank of England is considering granting exemptions for stablecoins.
```html The UK’s Financial Conduct Authority (FCA) has lifted its ban on Bitcoin and Ethereum Exchange-Traded Notes (ETNs), allowing retail investors to buy regulated products on recognized exchanges. This restores a regulated pathway to crypto exposure without direct ownership, but investors should be aware of associated risks including issuer credit risk. The Bank of England is demonstrating flexibility concerning stablecoins, potentially offering exemptions for firms needing larger balances for liquidity and settlement. They also plan to allow stablecoin use in a Digital Securities Sandbox to test and refine settlement processes under controlled conditions. Bitcoin ETNs track the price of Bitcoin or Ethereum and trade on regulated exchanges. While offering exposure without direct ownership, they are unsecured debt instruments, exposing investors to issuer credit risk. Investors should thoroughly review product prospectuses and issuer financials before investing. New stablecoins, like AxCNH pegged to the offshore Chinese Yuan, and legislative developments in the US are driving innovation and competition in the stablecoin space. The Bank of England's approach aims to balance innovation with financial stability while accommodating growing utility for liquidity and settlement. ```
