The British Financial Regulation and Supervision Office (FCA) proposed lifting a ban for retail investors on cryptocurrency exchange trading (ETN), introduced in 2021 to protect against potential risks of the volatility of digital assets.

According to the regulator, the new rules will allow retail investors to trade ETN, tied to bitcoin and ether, on adjustable exchanges, such as the London stock exchange. The FCA noted that such products are already available in other countries, for example, in the USA, Australia and Canada, which emphasizes the backlog of Great Britain in this sector.

According to Lucy Castledine Director for FCA digital assets, the proposal has become part of the strategy to create a transparent regulatory environment for the cryptocurrency industry of Great Britain. Kasldine commented that retail investors will gain access to new tools for working with digital assets, which, according to the regulator, will allow additional institutional capital to attract to the industry.

FCA Director David Geele emphasized:

“We want to balance the approach to risks, allowing people to decide whether such a high -risk tool is suitable for them, given the possibility of a complete loss of funds.”

At the same time, the administration of the London Stock Exchange confirmed the FCA willingness to accept applications for the auction of ETN, which also indicates the market interest in these tools. Consultations on lifting the ban will be extended until the end of the summer of 2025, after which the FCA will make a final decision.

The management emphasized that digital assets remain highly risk, and investors should be prepared for possible losses. The regulator also plans to strengthen control over the advertising of cryptoproods in order to minimize the misleading information.

Earlier, the UK financial supervision department called for local investors not to invest in the Digital Assets Nest crypto company, since it works without a supervisory license.