The Financial Conduct Authority is set to lift the ban on offering crypto exchange traded notes to retail investors as part of its drive to support UK growth and competitiveness.
The change would mean cETNs could be sold to individual consumers rather than just professional investors in the UK if they’re traded on an FCA-approved investment exchange.
The regulator said financial promotion rules would apply so consumers receive information on the risks and would not be offered inappropriate incentives to invest, in the same way as if they bought cryptoassets directly.
However, the watchdog said its ban on retail access to cryptoasset derivatives will remain in place.
The announcement marks the latest development in the FCA’s efforts to establish a regulatory framework for crypto.
David Geale, executive director of payments and digital assets at the FCA, said: “This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK’s crypto industry.
“We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money.”
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