The Financial Conduct Authority (FCA) has unveiled plans to lift its ban on crypto exchange-traded notes (cETNs) for retail investors, marking a significant step towards bolstering the UK’s standing in the global digital assets market.
Under the proposal, cETNs—which have been available to investors in other countries—would be accessible to individual consumers in the UK, provided they are traded on a Recognised Investment Exchange (RIE) approved by the FCA. This move aligns with the regulator’s broader push to establish a comprehensive framework for crypto, ensuring the UK remains competitive in the evolving financial landscape, it said.
David Geale, the FCA’s executive director of payments and digital assets, said the consultation demonstrated its commitment to supporting the growth and competitiveness of the UK’s crypto industry.
“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.”
Financial promotion rules will apply to cETNs, ensuring consumers receive clear risk information and are not subjected to inappropriate incentives—safeguards similar to those in place for direct investments in cryptoassets.
The FCA’s decision comes as part of a broader effort to streamline regulations and reduce burdens on firms, with additional measures aimed at simplifying reporting requirements and removing unnecessary data reporting. These steps are expected to generate significant cost savings across the industry, reinforcing the UK’s position as a financial powerhouse.
While the ban on retail access to cryptoasset derivatives will remain, the FCA said it would continue to refine its regulatory approach, balancing risk management with economic growth. With a roadmap set out for stablecoins and other aspects of the regime, the FCA said the UK was signalling its ambition to be at the forefront of the global digital finance revolution.
