The UK Financial Conduct Authority (FCA) has permitted retail trading of cryptocurrency Exchange Traded Notes (ETNs) under stringent regulatory conditions. This decision expands regulated market access, allowing retail investors exposure to cryptocurrencies through ETNs, which are considered safer alternatives to high-risk derivatives.
The regulator simultaneously upheld its ban on retail cryptocurrency derivatives trading due to persistent concerns over excessive risk and market unpredictability. The prohibition aims to shield non-professional investors from potential significant losses associated with derivative products.
The FCA emphasized active monitoring of market developments and signaled potential policy adjustments as conditions evolve. This cautious approach balances expanded retail participation through regulated ETNs with robust investor protection measures in the volatile cryptocurrency sector.