FCA lifts retail ban on crypto products

The FCA has changed the rules around crypto exchange traded notes (cETNs) allowing retail consumers access to the products.

The regulator initially banned the sale of cETNs in January 2021 but launched a consultation proposing to lift the ban in June this year.

Under the new rules the cETNs must be traded on an FCA-approved, UK-based investment exchange and protocols regarding financial promotion will remain to prevent consumers from being offered inappropriate incentives.

While the Consumer Duty standards will apply to firms offering cETNs the products, consumers won’t be covered by the Financial Services Compensation Scheme.

David Geale, executive director of payments and digital finance at the FCA, said:”Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood.

“In light of this, we’re providing consumers with more choice, while ensuring there are protections in place. This should mean people get the information they need to assess whether the level of risk is right for them.”