The UK's FCA will lift its ban on retail investors investing in cryptocurrency ETNs

The UK's Financial Conduct Authority (FCA) has announced that it will lift its ban on retail investors buying cryptocurrency exchange-traded notes (cETNs) to support the growth and competitiveness of the UK digital asset industry. The new rules require cETNs to be listed and traded on an FCA-accredited exchange (RIE) and apply existing financial promotion rules to ensure investors are fully informed about the risks. David Geale, executive director of payments and digital assets at the FCA, said the move is designed to balance risk with market options, but stressed that investors could lose all their money.
The FCA also maintains its ban on retail trading of cryptocurrency derivatives and will continue to evaluate regulatory policies for high-risk investments. Clifford Chance partner Diego Ballon Ossio pointed out that the move is in line with the UK's goal of becoming a crypto-friendly jurisdiction, but the prudential regulatory framework for related assets still needs to be refined.