United Kingdom: Published Update on FCA position on cryptoasset Exchange Traded Notes for professional investors

On 11 March 2024, the UK Financial Conduct Authority (FCA) published an update on its position on cryptoasset Exchange Traded Notes (cETNs) for professional investors. In particular, the FTC approves the creation of a UK listed market segment for cETNs by Recognised Investment Exchanges (RIEs). These cETNs are limited to professional investors in the financial markets, with exchanges ensuring proper controls for orderly trading and investor protection. The ban on selling cETNs to retail consumers remains, as the FCA deems them unsuitable due to the associated risks.