UK FCA moves to open 'Crypto Asset ETNs' to retail investors…plans to lift sales ban

The Financial Conduct Authority (FCA) in the UK is reportedly set to allow the sale of crypto exchange traded notes (cETN) to retail investors.

According to specialist crypto media outlet CoinDesk on the 6th, the FCA stated, "We will permit access to crypto asset ETNs traded on recognized investment exchanges (Recognized Investment Exchange, RIE) for retail investors only." Until now, these products could only be purchased by professional investors, and this loosening of restrictions is the first of its kind.

The FCA explained, "Although restrictions on retail investor access to crypto derivatives will remain in place, allowing ETNs strikes a balance between risk and choice," and "Investors will be provided with risk information, including the possibility of total loss, and improper investment solicitation activities are prohibited."

David Geale, FCA Head of Digital Assets, commented, "This is a move that demonstrates our commitment to supporting the growth and competitiveness of the crypto asset industry in the UK," adding, "Even though risk is involved, it is desirable to give people the opportunity to make their own investment decisions."