FCA’s Conservative Stance on Digital Asset ETPs Faces Growing Criticism
The UK Financial Conduct Authority (FCA) maintains restrictive policies against digital asset exchange-traded products (ETPs), barring retail investors from accessing cryptocurrencies through regulated channels. Its decade-old arguments—citing valuation challenges, cybercrime risks, volatility, and lack of investment utility—increasingly clash with global adoption trends.
Over 500 million users now engage with digital assets for purposes beyond speculation. Critics highlight the hypocrisy of permitting traditional speculative assets like venture capital or art while excluding crypto. The regulatory framework appears outdated as institutional interest grows and valuation methodologies mature.