The UK requires brokers to notify the Financial Conduct Authority before offering encryption ETNs to retail clients.

Jinse Finance reports that the UK has ended a four-year ban on cryptocurrency exchange-traded notes (ETNs), providing retail investors with a compliant investment channel for Bitcoin and Ethereum for the first time since 2021. The UK's Financial Conduct Authority (FCA) lifted this ban on retail clients on October 8, allowing the sale of crypto asset exchange-traded notes (cETNs), provided that these products are listed on the regulator's “official list” and traded on recognized exchanges such as the London Stock Exchange. Relevant institutions must comply with the new regulatory framework for “restricted retail investment products,” which includes mandatory risk warnings, setting a cooling-off period, and conducting suitability assessments for investors. This decision marks the completion of a policy shift by the UK's Financial Conduct Authority — in 2021, due to concerns over the volatility of crypto assets, valuation issues, and fraud risks, the agency had prohibited the offering of derivatives and exchange-traded notes related to crypto assets to retail investors; subsequently, the regulatory body gradually established a consumer protection framework, introduced a marketing conduct rulebook, and implemented a “consumer responsibility” standard across the industry.