UK’s FCA to Lift Ban on Retail Crypto ETNs Starting October

The Financial Conduct Authority will permit retail investors to access cryptoasset-backed exchange traded notes (cETNs) from 8 October, marking a significant shift in UK crypto regulation. The decision follows a three-month consultation period initiated in June.

Retail access will be restricted to cETNs listed on FCA-recognised UK investment exchanges. Firms must adhere to strict financial promotion rules ensuring transparent communication of risks and returns. The regulator emphasized that misleading investment incentives will not be tolerated.

While requiring compliance with Consumer Duty standards, the FCA clarified these products won't qualify for Financial Services Compensation Scheme protection. The existing ban on crypto derivatives for retail investors remains unchanged as the watchdog continues monitoring high-risk digital asset markets.