UK FCA proposes to release cryptocurrency ETNs to retail
- Cryptocurrency ETNs may be legalised in the UK
- Derivatives remain prohibited for retail investors
- FCA strengthens protection and transparency in digital assets
The Financial Conduct Authority (FCA), the UK financial market regulator, proposed this week the partial lifting of restrictions that currently prevent retail investors from accessing cryptocurrency-based exchange-traded notes (ETNs).
JUST IN: The UK's financial regulator, the FCA, is set to remove the ban on cryptocurrency exchange-traded notes (ETNs) for retail investors.
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— NOVEXA (@Novexa24) June 6, 2025
The measure would allow these products to be purchased by non-institutional investors, as long as they are traded on recognized exchanges. ETNs are debt instruments structured to reflect the performance of crypto assets, offering an indirect alternative for exposure to the cryptocurrency sector.
Despite this potential easing of restrictions, cryptocurrency derivatives — such as futures and options — will remain banned for retail trading. This restriction has been in place since January 2021, when the FCA determined that such products presented excessive risks, such as high volatility, valuation issues, and vulnerability to fraud and cybercrime.
No official announcement Published on June 6, the regulator emphasized that the release of ETNs will be accompanied by strict disclosure rules, requiring clear warnings about risks similar to those applied to direct investments in cryptocurrencies.
David Geale, the FCA’s executive director of payments and digital finance, said: “This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK’s cryptocurrency industry.” He added that the proposal aims to “rebalance our approach to risk and allow people to choose whether a high-risk investment is right for them.”
The move is part of a broader effort by the FCA to update its regulatory approach to digital assets. The regulator also recently unveiled new proposals for regulating stablecoins and fund assessment mechanisms, signaling a strategic move to integrate the crypto sector into the traditional financial system with greater legal certainty and transparency.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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