Financial services firms will soon be able to offer retail consumers access to crypto exchange traded notes (cETNs), under changes announced by the FCA.

The FCA’s ban on retail access to cryptoasset derivatives will remain in place.

The regulator said it will continue to monitor market developments and consider its approach to high-risk investments.

The changes will allow retail consumers to access cETNs which are traded on an FCA-approved, UK-based investment exchange.

The regulator said financial promotion rules will apply so consumers get the right information and aren’t offered inappropriate incentives to invest.

David Geale, executive director of payments and digital finance at the FCA, said: “Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood.

“In light of this, we’re providing consumers with more choice, while ensuring there are protections in place. This should mean people get the information they need to assess whether the level of risk is right for them.”

The Consumer Duty will apply to firms offering the products to retail investors. However, there won’t be any coverage or protection from the Financial Services Compensation Scheme (FSCS).

Consumers have been warned that they should ensure they understand the risks before deciding to invest.

The move is the latest development as the FCA continues to establish a regulatory framework for crypto. The regulator has outlined its crypto roadmap and recently published proposals on stablecoins as well as other aspects of the regime.

In January 2021, the FCA banned the sale, marketing and distribution of derivatives and ETNs that reference unregulated transferable cryptoassets to retail clients.

In March 2024, the FCA announced it would not object to requests from recognised investment exchanges (such as the London Stock Exchange) to create a UK listed market segment for cryptoasset-backed exchange traded notes (cETNs) for professional investors.

In June 2025, the FCA launched a consultation on proposals to lift the ban on retail access to cETNs.