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The FCA is preparing to lift the ban on cryptocurrency ETNs for retail investors.
The UK Financial Conduct Authority (FCA) will officially lift the ban on trading debt products (ETN) related to cryptocurrencies for retail investors, which was imposed in 2019. According to the announcement, trading will be allowed if the ETN is listed on an investment platform in the UK that has been approved by the FCA.
Unlike ETFs, which are still banned for retail investors in the UK, ETNs are debt securities linked to the value of cryptocurrencies but are not backed by underlying assets. This move is expected to pave the way for major corporations like BlackRock, CoinShares, or Bitwise to soon launch products for individual clients.
However, investors may have to wait a few more days after the removal date as the FCA has only just started accepting listing applications from the end of September. Currently, the FCA has not taken similar steps to loosen restrictions on ETFs or cryptocurrency derivatives.