FCA Proposes Lifting Crypto ETN Ban to Boost UK Competitiveness

Under the proposal, retail access to cETNs would be permitted—as long as the products are traded on an FCA-recognized investment exchange (RIE). Previously, such instruments were restricted to professional investors only. Similar products are already offered to retail participants in jurisdictions like the EU and Canada.

While the ban on cryptoasset derivatives remains in place, cETNs offer investors exposure to digital assets via exchange-traded structures. These instruments would still be governed by UK financial promotion rules, ensuring consumers receive proper risk disclosures and are shielded from inappropriate incentives.

“This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK’s crypto industry,” said David Geale, executive director of payments and digital finance at the FCA. “Lifting the ban would allow people to decide whether such high-risk investments are right for them.”

This proposal is part of a broader quarterly consultation paper aimed at reducing regulatory burdens and driving economic growth. Other key proposals include:

Streamlining fund value assessments, potentially reducing costs for over 149 firms managing 3,900+ funds. Eliminating redundant data reporting, benefitting nearly all UK financial firms.

The FCA emphasized that it will continue to monitor the crypto market and adjust its approach to high-risk investments accordingly. The consultation reinforces the regulator’s long-term roadmap to build a robust and dynamic crypto regulatory framework in the UK.

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