The UK’s Financial Conduct Authority has proposed lifting its retail ban on crypto exchange-traded notes (ETNs), signaling a shift toward broader crypto market access.
The United Kingdom’s Financial Conduct Authority (FCA) has proposed lifting its ban on offering
exchange-traded notes (ETNs) to retail investors.
In a June 6 announcement shared with Cointelegraph, the FCA said the proposed change would allow individual consumers to access crypto ETNs, provided they are listed on an FCA-recognized investment exchange.
“We want to rebalance our approach to risk, and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money,” said David Geale, executive director of payments and digital assets at the FCA.
Diego Ballon Ossio, partner at British law firm Clifford Chance, said that the move “is fully aligned with the UK’s ambition to position itself as a sophisticated jurisdiction in the crypto space,”
adding that it “will not only unlock exposure to crypto assets for retail investors but stands as signal that the UK is open to crypto.”
FCA hard at work on crypto regulation
The FCA is currently working on a new iteration of its crypto regulatory framework. In late May, the regulator requested public feedback on proposed regulations for stablecoins and cryptocurrency custody.
The ongoing efforts also follow a recent revelation by UK Chancellor of the Exchequer Rachel Reeves of plans for a “comprehensive regulatory regime” aimed at making the country a leader in the crypto sector.
