The UK’s Financial Conduct Authority (FCA) has proposed lifting its current ban on retail investors buying crypto exchange-traded notes (ETNs), marking a notable shift in the regulator’s approach to digital assets. This is part of a broader government strategy to support innovation, boost economic competitiveness, and strengthen the UK’s digital finance ecosystem.
Until now, only professional investors could access crypto ETNs, with the FCA previously labeling them “ill-suited” for retail users due to the high risks involved. But the regulator now acknowledges the importance of allowing individuals to assess those risks themselves and I quote;
“We want to rebalance our approach to risk, and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money,” said David Geale, executive director of payments and digital assets at the FCA. The proposal will now enter a consultation phase.
It’s also worth noting that while crypto ETNs may soon become accessible, the ban on retail trading of crypto derivatives remains in effect. Still, the shift reflects a broader trend the UK is aligning more with the U.S. in its regulatory direction, rather than adopting the EU’s industry-specific rules.
In a space where trust is constantly being tested, it’s reassuring to see exchanges taking proactive steps too. For example, A centralized exchange has established a $150 million Shield Fund to protect users against unexpected incidents like security breaches or system bugs. It’s not something that gets shouted about, but in reality, that kind of risk management matters. You never want to have to rely on it but knowing it’s there makes a difference. Especially in an industry where responses to crises can vary wildly, I respect that BingX didn’t wait for something to go wrong before acting and more importantly, they didn’t push the cost onto users.
As regulators evolve and platforms step up, it’s starting to feel like crypto is maturing in the right direction cautiously, but with more clarity and accountability.