The UK requires brokers to notify the Financial Conduct Authority before offering encryption ETNs to retail clients.

[The UK Requires Brokers to Notify the FCA Before Offering Crypto ETNs to Retail Customers] The UK has lifted a four-year ban on cryptocurrency exchange-traded notes (ETNs), providing retail investors for the first time since 2021 with a compliant investment channel for Bitcoin and Ethereum. The Financial Conduct Authority (FCA) lifted the ban on October 8 for retail customers, allowing the sale of cryptocurrency exchange-traded notes (cETNs), provided these products are included in the regulator's 'official list' and traded on recognized exchanges such as the London Stock Exchange. Relevant institutions must comply with the new regulatory framework for “restrictive mass market investment products,” which includes mandatory risk warnings, the establishment of a cooling-off period, and the implementation of investor suitability assessments. This decision marks the completion of a policy shift by the UK's Financial Conduct Authority - in 2021, due to concerns over the volatility of crypto assets, valuation issues, and fraud risks, the agency had prohibited the offering of crypto asset-related derivatives and exchange-traded notes to retail investors; since then, the regulator has gradually built a consumer protection framework, introduced a marketing conduct rulebook, and implemented “consumer responsibility” standards across the industry.