The UK’s top financial watchdog has lifted its previous prohibition on cryptocurrency exchange-traded notes (ETNs).
The Financial Conduct Authority (FCA) has officially announced this policy change in a public statement issued on October 8.
Under the revised regulations, individual investors can now access crypto ETNs through FCA-approved UK exchanges.
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This reverses the FCA’s previous restriction from January 2021, which deemed crypto ETNs too risky for average investors.
According to David Geale, a high-ranking official at the FCA:
The market has changed considerably since we limited retail access to crypto ETNs. This adjustment allows consumers more investment options.
While this change is significant, the FCA will maintain its prohibition on retail investors purchasing crypto derivatives. The organization has stated its commitment to monitoring and adjusting regulations in response to ongoing market developments.
Coinciding with this regulatory update, the government has clarified the tax implications of crypto ETNs. Starting October 8th, they are eligible for inclusion in registered pension schemes. Furthermore, beginning in April 2026, they can also be held within Stocks & Shares ISAs.
A crypto ETN serves as an investment tool. It gives investors exposure to the price movements of a cryptocurrency without the need to directly own the underlying asset.
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