FCA Lifts Ban on Retail Crypto ETNs in UK

The Financial Conduct Authority (FCA) in the UK has removed the restriction that prevented retail investors from purchasing crypto exchange-traded notes (ETNs), a move that will allow these products to be traded on FCA-approved platforms. Unlike exchange-traded funds (ETFs), which hold physical assets, ETNs are debt securities tied directly to crypto assets and carry no backing from tangible assets like gold or oil. This decision differs from the lifting of the ban on retail trading of crypto ETFs or their derivatives, signifying a specific focus on ETN regulations in the UK.