The Financial Conduct Authority (FCA) in the United Kingdom has lifted the ban it imposed in 2021 on trading exchange-traded notes (ETNs) for cryptocurrencies, allowing individual investors to access them again starting October 8, 2025.
This decision reflects a shift in the authority's view of the cryptocurrency market, which has become more mature and stable than it was before. According to David Gill, a representative of the authority, the increasing understanding of the market regarding cryptocurrency products and the growing legitimacy of digital assets were key factors in making this decision.
Exchange-traded notes (ETNs) for cryptocurrencies are debt securities issued by financial institutions. These securities track the prices of cryptocurrencies but do not hold the actual assets, exposing investors to credit risks from the issuer. Therefore, it is essential to choose reliable providers and regulated investment platforms.
Despite this positive development, the authority still imposes a ban on individuals' access to cryptocurrency derivatives, such as futures and options, due to their high volatility and associated risks. The authority continues to closely monitor these products with the aim of protecting investors.
