- The UK FCA has lifted the ban on crypto ETNs for retail investors, effective October 2025, through recognized UK investment exchanges.
- Trading will be limited to FCA-approved platforms, ensuring investor protection under strict financial promotion and market conduct regulations.
- The decision follows the 2021 restriction, with the FCA citing market evolution and improved investor understanding of crypto products.
The UK Financial Conduct Authority (FCA) will allow retail investors to invest in crypto exchange-traded notes (cETNs) starting October 8, 2025. This new rule only applies to products that are traded on UK FCA-approved Recognized Investment Exchanges (RIE).
FCA Reverses 2021 Ban on Retail Crypto ETN Access
After restricting access in January 2021, the FCA has now approved a return for retail investors to the cETN market. This move follows the March 2024 decision allowing professional investors to trade cETNs on platforms such as the London Stock Exchange.
David Geale, Executive Director of Payments and Digital Finance at the FCA, stated that the market has developed considerably. He said, “Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood.”
The FCA said it is ready to allow broader access, as long as trading happens on a UK-recognized investment exchange. The change offers more product choice to consumers while enforcing risk awareness and protection standards.
Strict Guidelines to Govern Retail Participation
The new rules come with clear limitations. Retail investors must be informed and protected under financial promotion rules. These rules require firms to present information fairly, clearly, and without misleading incentives.
Notably, cETNs accessed under the new regime will not be protected by the Financial Services Compensation Scheme (FSCS). If a firm collapses or a platform fails, investors will not be entitled to compensation. This places full responsibility for any losses directly on the investor.
The FCA emphasized that retail access to crypto derivatives remains prohibited. The authority said it would continue evaluating market conditions to determine its future stance on such high-risk investment products.
Crypto Regulation Efforts Continue
The FCA’s move is part of a broader initiative to establish a structured regulatory framework for digital assets. It recently introduced proposals for stablecoins and is actively developing its crypto oversight strategy.
This regulatory amendment represents some progress in bringing UK retail access closer to the more developed financial system of the crypto market. The FCA confirmed it will continue to track the sector and amend its rules as the market evolves further.
