The UK’s financial watchdog is reconsidering itsapproach to crypto investments by proposing to lift the ban on retail access tocrypto exchange-traded notes (cETNs). This shift signals a growing openness to integratingthese products into mainstream markets, potentially increasing competition andchoice for UK investors. The change would allow individual consumers to buycrypto ETNs on FCA-approved exchanges, a move that other countries have already adopted.A New Chapter for Crypto ETNs in the UKCurrently, crypto ETNs remain restricted toprofessional investors in the UK. The FCA’s proposal would allow retail investors to trade these products through recognised investment exchanges understrict regulatory safeguards. Consumers would receive clear information about therisks involved, aligning promotional rules with those applied to direct crypto assetpurchases.“This consultation demonstrates our commitment tosupporting the growth and competitiveness of the UK’s crypto industry,” theregulator noted.“We want to rebalance our approach to risk, and liftingthe ban would allow people to make the choice on whether such a high-riskinvestment is right for them, given they could lose all their money.”Read more: After Circle’s IPO, Crypto Exchange Gemini Takes Next Step Toward Listing With SEC FilingWhile the FCA is easing restrictions on crypto ETNs,it remains cautious. The ban on retail access to crypto asset derivatives willstay in effect for now. The regulator continues to monitor developments closelyand maintains a firm stance on high-risk investments to protect consumers.This proposal is part of the FCA’s broader effort tobuild a comprehensive regulatory framework for crypto assets. It follows recentconsultations on stablecoins and other regulatory measures aimed at providingclarity and fostering responsible growth within the crypto sector.Supporting Growth Beyond CryptoThe FCA also outlined additional proposals in itslatest quarterly consultation paper to reduce regulatory burdens across thefinancial sector. These include simplifying reporting requirements forfunds’ assessments of value, which is expected to save costs for nearly 150 firmsmanaging thousands of funds, and cutting unnecessary data reporting thataffects most firms. These steps highlight the FCA’s dual focus:encouraging innovation and market development while maintaining investor protections.This article was written by Jared Kirui at www.financemagnates.com.