The UK may be joining the ranks of cryptocurrency friends after the USA! A new step has arrived.

The UK financial regulator, the Financial Conduct Authority (FCA), has taken an important step in the cryptocurrency asset market by announcing that it will allow retail investors access to cryptocurrency-based exchange-traded notes (cETN).

According to the press release published by the FCA today, with this change, cETNs traded on FCA-approved investment exchanges (Recognized Investment Exchange – RIE) can be offered not only to professional investors but also to retail investors.

The FCA pointed out that similar products are currently accessible in other countries, stating that the ban on individual access to crypto asset derivative products will continue to be in effect. The institution also added that it would continue to review its approach to high-risk investments and monitor market developments.

FCA's Executive Director for Payment Systems and Digital Assets, David Geale, said, "This consultation process demonstrates the UK's commitment to supporting the growth and competitiveness of the crypto industry." Geale also stated, "We want to restructure our approach to balance the risk. Lifting the ban will allow people to choose whether these types of investments are suitable for them, which carry the risk of losing all their money."

Under the new regulation, the existing financial promotion rules of the United Kingdom will also apply. This will ensure that investors receive adequate information regarding risks and that inappropriate incentives are not offered.

*This is not an investment advice.

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