UK to Allow Retail Crypto ETNs, But With Strict Safeguards

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The UK’s financial watchdog is carefully unwinding its crypto restrictions by lifting a ban on retail access to crypto ETNs.

Unlike a full embrace, the FCA’s reversal comes with critical guardrails: the notes must be traded on a “Recognised Investment Exchange” and are distinct from—and riskier than—ETFs, as they are unbacked debt securities. The decision, reached after consultations with industry and consumer groups, has prompted firms like BlackRock to explore offerings.

While the industry hopes this improves consumer protection, the move represents a controlled, rather than a wholesale, opening of the UK’s retail crypto market.