After just a couple of weeks of clarifying its stance on accepting applications for crypto exchange-traded notes, the London Stock Exchange will officially launch the crypto ETNs in May 2024.
In March 2024, the London Stock Exchange (LSE) declared it would start accepting applications for crypto exchange-traded notes. The exchange only took a couple of weeks thereafter to announce the launch of the crypto ETNs on May 28 this year. It also released a notice stating the event and noted that from April 8, one could submit the application for the crypto ETNs.
The Financial Conduct Authority (FCA) will have the final say on applicants. Meanwhile, each issuer for the crypto ETNs would also have to furnish a draft prospectus and a letter. It is to clarify their eligibility.
LSE had declared earlier that only professional investors would be able to invest in the products. The same rule will continue from May. But a host of professionals who are crypto investors would benefit from the new rule. The development in the UK could have also stemmed from US spot Bitcoin ETF approvals. It likely increased the number of crypto investors.
Moreover, the LSE’s official notice said, “In choosing this date we have taken into consideration that we need to ensure that issuers meet the requirements for consideration detailed in the Crypto ETN factsheet,” referencing the launch date it chose.
With the crypto market marching towards record highs, regulators in several countries have endorsed the market’s regulation. In the UK, the FCA has claimed it as one of its top priorities. At the same time, authorities like the UK Treasury and Bank of England have also headed separate regulatory initiatives. A parallel stablecoin law is also in the works in the country.
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