The UK’s Financial Conduct Authority (FCA) has lifted the ban on cryptoasset exchange-traded notes (cETNs) on Oct 8. These products will trade on FCA-approved Recognised Investment Exchanges, subject to strict rules. The ban on derivatives and ETNs referencing unregulated cryptoassets for retail consumers began in January 2021.

David Geale, FCA executive director, stated that the market has become more mainstream, offering customers more choice while maintaining protections. However, these products will not be insured by the Financial Services Compensation Scheme (FSCS), so investors must understand the risks involved.

In the U.S., crypto products like spot Bitcoin funds are typically structured as ETFs. In the UK and Europe, the products will be structured as ETNs, which are debt instruments issued by a financial institution. The FCA clarified that the restriction on crypto derivatives remains in place.

While civilian access to ETNs is now available, the FCA noted that the ban on crypto derivatives, such as futures and options, remains. The agency is also moving forward with its larger crypto plan, including regulations for stablecoins and other digital assets. The FCA emphasized active monitoring of high-risk transactions.

Read more at Yahoo Finance: UK lifts ban on crypto ETNs today