The United Kingdom’s Financial Conduct Authority (FCA) has increased the prohibition of retail access to records exchanged by the cryptocurrency exchange (CETNS).
Companies in the UK are about to offer Cetn consumers, with regulatory changes effective October 8, According to in an FCA announcement on Friday.
The new developmental approach to UK regulation in crypto arrives after the FCA banned The Crypto ETNs in January 2021, citing the intense volatility of crypto assets and a “lack of legitimate investment demand” for retail buyers.
“Because we restrict access to retail in Cetn, the market has changed, and the products have become more mainstream and better understandable,” David Geale, Executive Director of FCA and Digital Finance, said the announcement.
What are crypto etns?
Unlike cryptocurrency Funds exchanged by exchange (ETF)that monitors the price of underlying properties -as Bitcoin (Btc) In preservation, Crypto ETNs are not supported by any underlying possessions and represents debt security.
“Instead of funding equity, each exchanged note of an ETN represents an obligation from a legal creature holding the underlying possession of collateral,” According to In describing the ETN of the Austrian Crypto trading platform Bitpanda.
By investing through an ETN crypto monitoring, investors can get exposure to crypto physical assets through their regular brokers or banks.
ETNs are associated with risks such as limited control over their properties, emphasizing the importance of buying ETNs from respectable institutions to ensure safety, Bitpanda said.
Crypto derivatives are still banned
While the Crypto ETNs allowed, the UK FCA has yet to make a decision whether to allow access to retail investors Crypto derivativeswhich the authorities banned by the ETN in 2021.
“The FCA will continue to monitor market developments and consider its approach to high risk investments,” the regulator said.
Related: ‘Everything is good’: Coinbase Mocks UK Financial System in the new video
Crypto derivatives, or products such as crypto futures, options and eternal contracts, showed a stability in the second quarter of 2025, including Volumes of netting $ 20.2 trillionAccording to the crypto analytics platform tokeninsight.
In contrast, Centralized exchange ‘(CEXS) Volumes dropped by 22%, showing a huge contrast to Cryptocurrency ETFs.
US allows in-kind for crypto ETFs: no retail effect
Cryptocurrency ETFs have seen amazing -wonderful growth from them Historical launch in the US in 2024.
On Tuesday, the US Securities and Exchange Commission (SEC) delivered another important decision to Crypto ETFs, allowing those who gave the Continue with in-kind creations and redemption or to exchange ETF sharing for the underlying crypto assets.
Although the move is largely seen as big news for the crypto industry, ETF analysts like Eric Balchunas say the event is unlikely to have no effect on retail investors.
“This is not a huge effect on retail but more of a plumbing arrangement. It only makes pipes a bit better,” Balchunas Says On an X post last Tuesday. The biggest takeaway from milestones is that the SEC is ready to treat crypto like a legitimate asset class, he added.
Magazine: Crypto entrepreneurs have cheated themselves’ with price predictions: Peter Brandt
