UK financial watchdog will not block requests for crypto exchange-traded notes

By Thomson Reuters Mar 11, 2024 | 2:39 AM

By Tom Wilson

LONDON (Reuters) – Britain’s financial regulator said on Monday it will not object to requests from recognised investment exchanges to launch UK-listed cryptoasset-backed exchange-traded notes.

Such products would be only available for professional investors, such as investment firms and credit institutions authorised to operate in financial markets, the Financial Conduct Authority said in a statement.

Exchanges must ensure orderly trading and proper protection for investors, the FCA said, with crypto exchange-traded notes (ETNs) meeting all the requirements for UK listings.

The FCA said that with greater insight and data from a longer period of trading history, professional investors are now able to better establish whether crypto ETNs meet their risk appetite.

However such products, as well as crypto derivatives “are ill-suited for retail consumers due to the harm they pose,” the watchdog said, adding that the ban on crypto ETNs and crypto derivatives to retail consumers would remain.

“The FCA continues to remind people that cryptoassets are high risk and largely unregulated. Those who invest should be prepared to lose all their money,” it added.

(Reporting by Tom Wilson; Editing by Amanda Cooper and Louise Heavens)