Companies offering crypto exchange-traded notes to UK retail investors would be subject to existing financial promotion and risk disclosure rules to ensure consumers are adequately informed of the associated risks and to prevent inappropriate incentives to invest

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Companies offering crypto-linked securities will be subject to financial promotion rules, said the FCA, “so consumers get information on the risks and would not be offered inappropriate incentives to invest, in the same way as if they bought cryptoassets directly”.

The U.K.’s existing financial promotion rules would apply so consumers get information on the risks and would not be offered inappropriate incentives to invest, in the same way as if they bought cryptoassets directly, the FCA said.

The FCA emphasized that safeguards would still apply, including requirements for risk disclosures and restrictions on promotional incentives, similar to the rules for direct digital asset sales

To balance risks, the rules on financial promotion will still apply. This means that institutions will have to provide investors with information about the risks involved with these assets.