The UK’s Financial Conduct Authority (FCA) has officially lifted its ban on crypto Exchange-Traded Notes (ETNs), granting retail investors regulated access to these products for the first time since 2021.
Effective October 8, 2025, investors will be able to purchase crypto ETNs, financial instruments that track the price of cryptocurrencies such as Bitcoin and Ethereum, through FCA-approved UK Recognised Investment Exchanges (RIEs), including the London Stock Exchange.
The move reverses a decision made in January 2021, when the FCA imposed a sweeping ban on the sale of crypto ETNs and derivatives to retail investors. At the time, the regulator cited “extreme volatility, market abuse risks, and lack of reliable valuation” as key factors driving the prohibition.
The ban came in the aftermath of high-profile losses during the crypto boom of 2017–2020, which left thousands of retail traders exposed to severe price swings.
Since then, the FCA has monitored the market’s evolution. Improved custody solutions, stricter compliance by exchanges, and the growing adoption of digital assets in traditional finance prompted a review earlier this year under consultation paper CP25/16.
Under the new framework, ETNs will remain high-risk products, subject to robust safeguards. Firms must provide clear risk warnings, meet Consumer Duty obligations, and confirm that investors understand there is no protection under the Financial Services Compensation Scheme (FSCS).
The ban on crypto derivatives remains in force, underscoring the FCA’s cautious stance.
“This is a targeted, measured step to give retail investors controlled access to crypto under clear consumer protections,” the FCA stated.
Observers view the move as a strategic effort to align the UK with global financial hubs such as the EU and the U.S., where similar products are already available, without compromising investor safety.
