The Financial Conduct Authority has published proposals to lift its ban on offering crypto exchange traded notes (cETNs) to retail investors. If implemented, cETNs could be sold to individual consumers in the UK, rather than only to professional investors, provided the products are traded on an FCA-approved investment exchange (a recognised investment exchange). The FCA said financial promotion rules would apply, requiring risk information and restricting inappropriate incentives, in the same way as when consumers buy cryptoassets directly. The existing ban on retail access to cryptoasset derivatives would remain. Alongside the cETN proposal, the FCA’s quarterly consultation paper includes measures to simplify reporting requirements for funds’ assessments of value, which it said will deliver a significant cost saving for 149 firms managing more than 3,900 funds, and to remove additional data reporting requirements affecting nearly all firms.
Financial Conduct Authority 2025-06-05
Financial Conduct Authority consults on lifting the UK retail ban on crypto exchange traded notes
The Financial Conduct Authority (FCA) proposes lifting the ban on offering crypto exchange traded notes (cETNs) to UK retail investors if traded on an FCA-approved exchange. Financial promotion rules would apply, while the ban on retail access to cryptoasset derivatives remains. The FCA's consultation paper also suggests simplifying reporting requirements for funds, potentially reducing costs for 149 firms managing over 3,900 funds.