UK will open $930bn in savings to crypto — if regulators approve

Core Insights - The UK Financial Conduct Authority (FCA) is set to lift a ban on crypto exchange-traded notes (ETNs), potentially unlocking nearly $1 trillion in British savings accounts for crypto investment [1][2] - This regulatory change could position the UK as a significant player in the global crypto market, especially if crypto assets are confirmed for individual savings accounts and self-invested personal pension accounts [3][4] Regulatory Changes - The FCA's ban on the sale, marketing, and distribution of derivatives and ETNs referencing unregulated crypto assets to retail investors was enacted in January 2021 and will be reversed on October 8, 2023 [2] - A parliamentary group has begun working on cryptocurrency legislation following a year-long hiatus, and the FCA has opened a consultation on proposed crypto rules [6] Market Potential - UK residents held over $930 billion in assets through individual savings accounts (ISAs) and self-invested personal pension accounts (SIPPs) as of 2023, indicating a substantial market for crypto investments [4] - A survey by Norstat revealed that 30% of 2,500 UK investors would consider investing in crypto via ETNs, a significant increase from the 12% of UK residents who owned crypto as of November 2024 [7] Industry Response - Freetrade, a UK-based fintech platform, is awaiting final guidance from HMRC regarding the eligibility of crypto ETNs for tax-advantaged accounts, with expectations that Bitcoin and Ethereum ETNs will be available [5]