FCA allows UK retail investors access to crypto ETNs from October 2025, with strict rules to ensure investor protection and transparency.
The UK’s Financial Conduct Authority (FCA) has announced that starting from October 8, 2025, retail investors will be allowed to access crypto exchange-traded notes (cETNs). This authorization will be limited to the products traded on UK investment exchanges with the FCA approval. The move is a change in the regulatory attitude of the UK towards the crypto-related products offered to retail clients.
FCA Lifts Ban on Crypto ETNs for Retail Investors
In January 2021, the FCA already prohibited the sale, marketing, and distribution of derivatives and exchange-traded notes that refer to unregulated crypto assets to retail investors. Since then, the regulator has observed that the market has matured. Investors have a better idea of products, and the crypto market has been made more mainstream. Consequently, the FCA has resolved to open up to retail customers, and at the same time, protections are laid down.
A number of conditions are to be fulfilled to make it safe. The trading of crypto ETNs is restricted to recognized investment exchanges (RIEs) in the UK that are authorized by the FCA. Also, any promotions made on behalf of such products should be financial and have to adhere to the current rules. The rules are designed to assist investors in making informed decisions and avoid being exposed to misleading or overly aggressive marketing.
Related Reading: UK FCA Plans to Ban Borrowed Funds for Retail Crypto Investments
David Geale is Executive Director of Payments and Digital Finance at the FCA. He stated that the decision aligns with ongoing market developments. Furthermore, the regulator aims to balance consumer choice with adequate protection. He emphasized that as more investment options emerge, safeguards must also strengthen. This is especially important since the crypto industry carries high risks.
However, it has limits. The crypto ETNs that retail investors will have access to will not be under the protection of the Financial Services Compensation Scheme (FSCS). This implies that consumers would not be in a position to receive compensation in case of failure. It is therefore good that people are fully aware of the risks they will have to undertake before they decide to invest.
FCA Cautious on Retail Crypto Access Despite ETN Greenlight
The FCA has also confirmed that the broader ban on cryptoasset derivatives for retail clients will remain in place. The average consumer still finds these products too risky. Still, the regulator has indicated that it will keep a close eye on market trends.
The update follows recent actions by the FCA to clarify digital asset regulations. In March 2024, the FCA approved the launch of crypto-backed exchange-traded notes for professional investors. As a result, UK exchanges such as the London Stock Exchange can now list these products. This move signals a growing acceptance of crypto within regulated financial markets. Subsequently, in June 2025, the FCA opened a consultation on the retail ban on cETNs and whether it should be lifted.
The decision to lift the ban also aligns with the FCA’s broader crypto roadmap, which includes proposals on stablecoins and digital finance tools. Moreover, the roadmap reflects an effort to modernize financial regulations while supporting innovation. At the same time, securities regulators demand that investment exchanges offering such products meet strict regulatory standards. Consequently, these platforms must ensure robust investor protections similar to those in traditional markets.
Overall, the switch creates new opportunities for retail investors in the UK. However, it maintains a conservative and regulated way of dealing with digital assets.
