The UK’s Financial Conduct Authority (FCA) will lift its ban on retail investors buying crypto exchange-traded notes (ETNs) starting next week, according to Foresight News. The ban, which has been in place since 2019, will be removed under certain conditions.
To qualify, the crypto ETNs must be listed on investment exchanges that are approved by the FCA and based in the UK. The move marks a cautious step toward giving retail investors limited access to crypto-related financial products.
Crypto ETNs are different from exchange-traded funds (ETFs). While ETFs typically hold the underlying assets, ETNs are debt instruments that track the price of crypto assets but are not backed by physical holdings.
It’s important to note that the FCA’s ban on retail access to crypto ETFs and derivatives remains in place. The regulator has previously raised concerns about investor protection and the high risks associated with such products.
Featured image from: cointelegraph.com