FCA Proposes Lifting Ban on Retail Crypto ETNs in UK

The UK Financial Conduct Authority is moving to allow retail investors access to crypto exchange-traded notes, marking a significant shift in the regulator's approach to digital assets. cETNs would become available to individual consumers through FCA-approved exchanges, subject to strict financial promotion rules that mandate clear risk disclosures.

David Geale, the FCA's payments and digital finance chief, framed the consultation as balancing innovation with consumer protection. 'This allows people to make informed choices about high-risk investments,' he stated, acknowledging the potential for total loss while emphasizing consumer autonomy.

The proposal forms part of the FCA's broader crypto regulatory framework development, following recent stablecoin proposals. Notably, the ban on crypto derivatives remains intact, with the regulator pledging ongoing monitoring of high-risk investment products.