The UK's Financial Conduct Authority (FCA) has announced the lifting of the ban on retail trading of cryptoasset-backed exchange-traded notes (cETNs) for investors, effective October 8, 2025.
FCA Lifts Ban on Crypto ETNs
The FCA confirms the allowance for retail trading of cETNs listed on FCA-recognized investment exchanges. This decision follows a consultation process launched in June, aimed at reflecting a more mature market environment.
Response to Market Maturity and Industry Pressure
The FCA indicates that the market has evolved with better investor protections, leading to a policy shift. Simultaneously, key industry players, like Coinbase, advocate for a more relaxed regulatory environment.
Restrictions on Crypto Derivatives and New Rules for cETN
Access to crypto derivatives for retail investors remains restricted due to their high-risk nature. Companies offering cETNs must adhere to new financial promotion regulations to ensure transparency and fair treatment of clients.
The FCA's regulatory policy change provides new opportunities for investors while maintaining restrictions on more high-risk instruments to protect consumers.
