The UK's Financial Conduct Authority (FCA) has proposed lifting its ban on crypto $BTC exchange-traded notes (ETNs) for retail investors, potentially opening new investment avenues in the crypto market. This move, currently under consultation, would allow individual investors to access ETNs linked to cryptocurrencies like Bitcoin and Ethereum, which were previously restricted to professional investors due to high-risk concerns. $XRP
The FCA emphasized that while this proposal aims to support the growth and competitiveness of the UK’s crypto industry, it also seeks to balance risk by ensuring that financial promotion rules apply to these investments. David Geale of the FCA stated that the initiative is designed to empower consumers to make informed decisions while acknowledging the high-risk nature of these products.
This policy shift aligns with the UK government's broader efforts to regulate cryptoassets, as seen in the draft legislation introduced in April 2025, which aims to integrate crypto exchanges and agents into the regulatory framework. However, the FCA maintains its ban on retail access to crypto derivatives, citing ongoing concerns about their suitability for individual investors.
The consultation period for this proposal is open until July 2025, inviting feedback from industry stakeholders and the public.
