UK’s FCA Lifts Ban on Crypto ETNs with New Safeguards for Retail Investors
The Financial Conduct Authority has reversed its prohibition on crypto exchange-traded notes, permitting their sale to UK retail investors under stringent new conditions. Listed cETNs must now carry explicit risk warnings, enforce cooling-off periods, and pass rigorous appropriateness tests.
This policy shift reflects a calibrated embrace of digital assets—expanding market access while prioritizing consumer protection. The FCA's framework demands fair value assessments, targeted product design, and transparent communication to mitigate risks inherent in these volatile instruments.