Source: Sharecast
The move would mean that cETNs could be sold to individual consumers, rather than just professional investors if they’re traded on an FCA-approved investment exchange.
The regulator said financial promotion rules would apply so consumers get information on the risks and would not be offered inappropriate incentives to invest, in the same way as if they bought cryptoassets directly.
David Geale, executive director of payments and digital assets at the FCA said: "This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK’s crypto industry. We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money."
The FCA’s ban on retail access to crypto asset derivatives will remain in place. The regulator said it will keep monitoring market developments and consider its approach to high-risk investments.