The UK’s Financial Conduct Authority (FCA) has reversed its prohibition on crypto exchange-traded notes (cETNs), making these products accessible to retail investors starting October 8, 2023.
This decision marks a significant shift in the regulator’s stance, ending a ban that had been enforced against crypto ETNs since January 2021. The move aligns the UK regulatory approach more closely with the broader global crypto market.
Industry figures, including CryptoUK’s Ian Taylor, welcomed the announcement. Taylor described it as a positive step enhancing the UK’s competitiveness within the crypto sector and signalling a more open market environment for retail participants.
It is important to note, however, that restrictions on crypto derivatives for retail investors remain unchanged and are still in force under existing FCA rules.
The lifting of the cETN ban is anticipated to strengthen the UK’s position in the global cryptocurrency market while offering retail investors new avenues to gain regulated exposure to crypto assets.