The UK Financial Conduct Authority (FCA) has removed restrictions on retail investors purchasing cryptocurrency exchange-traded notes (cETNs), aiming to bolster the growth and competitiveness of the UK’s digital asset market. The new regulations require cETNs to be listed on FCA-recognized exchanges and adhere to existing financial promotion rules, ensuring investors understand associated risks. David Geale, Director of Payments and Digital Assets at the FCA, emphasized the balance between risk management and market choice while cautioning against potential investment losses. The FCA will maintain a ban on retail trading of cryptocurrency derivatives and continue to evaluate regulations for high-risk investments. Diego Ballon Ossio, partner at Clifford Chance, welcomed this move as aligning with the UK’s goal of becoming a crypto-friendly jurisdiction, but highlighted the need for a robust regulatory framework for these assets.