UK FCA Lifts Four-Year Ban Allowing Retail Crypto ETN Trading

The UK Financial Conduct Authority (FCA) is lifting its 2021 ban on retail investors trading cryptocurrency exchange-traded notes (ETNs), effective October 8, 2025, signaling a significant regulatory shift reflecting market maturity and increased investor understanding. Retail investors will be able to access crypto ETNs exclusively through FCA-recognized and authorized Recognised Investment Exchanges (RIEs), with strict compliance required under the Consumer Duty framework to ensure transparent risk disclosures and appropriate financial promotions. Despite this new access, crypto ETNs remain unprotected by the Financial Services Compensation Scheme (FSCS), meaning investors bear full risk of potential losses, including counterparty risk and tracking errors. The FCA continues to prohibit retail access to more complex crypto derivatives, maintaining caution over products deemed too risky. This move aligns with broader global trends to integrate digital assets into regulated financial markets while balancing consumer protection and market innovation. FCA officials emphasize that the decision aims to provide consumers with more choice and better information to assess their risk tolerance amid evolving crypto investment products.