UK FCA Lifts Ban on Retail Purchase of Crypto ETNs

According to Foresight News, the UK Financial Conduct Authority (FCA) has announced the removal of the ban on retail investors purchasing cryptocurrency exchange-traded notes (cETNs) to bolster the growth and competitiveness of the UK's digital asset sector. The new regulations stipulate that cETNs must be listed on FCA-recognized exchanges and adhere to existing financial promotion rules to ensure investors are fully aware of the associated risks. David Geale, FCA's Director of Payments and Digital Assets, stated that the move aims to balance risk with market choice, while cautioning that investors could potentially lose all their funds. The FCA will maintain the ban on retail trading of cryptocurrency derivatives and continue to assess regulations for high-risk investments. Diego Ballon Ossio, a partner at Clifford Chance, noted that this decision aligns with the UK's goal of becoming a crypto-friendly jurisdiction, though he emphasized the need for a robust regulatory framework for these assets.