The United Kingdom's Financial Conduct Authority announced on August 1 that retail investors will gain access to crypto exchange-traded notes (cETNs) from October 8 on FCA-approved investment exchanges. This decision reverses the ban introduced in January 2021, which restricted these products citing extreme volatility and lack of legitimate investment need. David Geale, executive director of payments and digital finance at the FCA, stated that the market has evolved and products have become more mainstream and better understood.
The cETNs will only be tradeable on FCA-recognised investment exchanges and will be subject to financial promotion rules to ensure consumers receive appropriate information. The Consumer Duty will apply to firms offering these products to retail investors, however there will be no coverage from the Financial Services Compensation Scheme (FSCS). Ian Taylor, board adviser at CryptoUK, noted that the UK had been an outlier on ETNs, while Riccardo Tordera, director at The Payments Association, argued that restrictions had put the UK at a disadvantage as a global crypto hub.
The ban on retail access to cryptoasset derivatives remains in place, with the FCA continuing to monitor market developments. This change forms part of the UK's broader crypto regulatory framework, which includes proposals on stablecoins and other aspects of the regime. The decision aligns the UK with international markets where similar products are already available to individual investors in the United States, Canada, Hong Kong and the European Union.
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The UK's Financial Conduct Authority reverses its 2021 ban on crypto exchange-traded notes, allowing retail access from October 8, 2025.
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Yasmin Werner
