The UK's FCA will lift the ban on retail investors investing in Crypto Assets ETNs.

[The UK FCA will lift the ban on retail investors investing in crypto ETNs] The Financial Conduct Authority (FCA) of the UK has announced that it will lift the ban on retail investors purchasing crypto exchange-traded notes (cETNs) to support the growth and competitiveness of the UK’s digital asset industry. The new regulations require that cETNs must be listed and traded on exchanges recognized by the FCA (RIE) and comply with existing financial promotion rules to ensure investors fully understand the risks. FCA Executive Director for Digital Assets David Geale stated that this move aims to balance risk with market choice, but emphasized that investors might lose all their funds. The FCA simultaneously maintains the ban on retail trading of Crypto Assets derivatives and will continue to assess regulatory policies for high-risk investments. Clifford Chance partner Diego Ballon Ossio pointed out that this move aligns with the UK’s goal of becoming a crypto-friendly jurisdiction, but a prudent regulatory framework for related assets still needs to be improved.