UK firms will soon be able to offer retail investors access to crypto exchange traded notes (cETNs), following new rules from the Financial Conduct Authority (FCA).

Retail investors will soon have the chance to invest in crypto exchange traded notes (cETNs), provided these products are listed on an FCA-approved, UK-based Recognised Investment Exchange (RIE). The same financial promotion rules will apply, ensuring consumers receive clear, accurate information and are not tempted by inappropriate incentives.

David Geale, Executive Director of Payments and Digital Finance at the FCA, explained:

“Since we restricted retail access to cETNs, the market has matured. These products are now more widely understood and integrated into the mainstream. We’re giving consumers more choice while maintaining strong protections, so they can make informed decisions about whether the level of risk suits them.”

Firms offering cETNs to retail customers must comply with the FCA’s Consumer Duty. However, these products will not be covered by the Financial Services Compensation Scheme (FSCS). Investors should carefully assess the risks before committing any funds.

This move is part of the FCA’s broader effort to build a clear regulatory framework for crypto. The regulator has already shared its crypto roadmap, put forward proposals on stablecoins, and outlined plans for other areas of the sector.

The FCA’s existing ban on retail access to cryptoasset derivatives will remain in place. The regulator will continue to monitor the market and review its stance on high-risk investments as conditions evolve.