UK FCA Lifts Ban on Retail Crypto ETNs, Enhancing Digital Asset Access

Effective Oct. 8, the FCA reverses its 2021 ban on retail crypto ETNs amidst evolving market dynamics and industry calls for proportionate consumer risk measures.

Summary

The UK’s Financial Conduct Authority lifted its ban on retail access to crypto exchange-traded notes (cETNs) effective Oct. 8, a ban initially imposed in January 2021 due to market volatility. Industry leaders, including CryptoUK’s Ian Taylor and The Payments Association’s Riccardo Tordera, welcomed the move as a reflection of improved market understanding. However, the FCA confirmed that crypto derivatives, such as futures, options, and perpetual contracts, will remain banned as it continues to monitor high-risk investments.

Terms & Concepts
  • cETNs: Crypto exchange-traded notes are investment products that track crypto asset performance without requiring direct ownership.
  • crypto derivatives: Financial instruments including futures, options, and perpetual contracts whose values are derived from underlying crypto assets.