In a landmark decision, the UK Financial Conduct Authority has ended its three-year ban on crypto exchange-traded notes, allowing retail investors to access these products through FCA-regulated exchanges.
Crypto ETNs are debt instruments that track the price of cryptocurrencies, giving investors exposure without needing to hold the actual asset. The FCA said its decision was based on the “evolution and mainstream understanding” of crypto markets.
“Since we restricted retail access to crypto ETNs, the market has matured,” said David Geale, FCA’s executive director of digital finance.
The regulator emphasized that investor safeguards will remain in place to balance innovation with consumer protection.
The ban, imposed in January 2021, had been justified on the grounds that crypto ETNs were too risky for retail traders.
The new policy highlights the UK’s growing openness toward crypto innovation, as the government prepares a comprehensive digital asset framework under its new leadership.
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