FCA clears crypto ETNs for UK retail investors, trading resumes October 2025

The Financial Conduct Authority (FCA) has announced that crypto exchange-traded notes (cETNs) will once again be available to retail investors in the UK from 8 October 2025.

This reverses the ban that has been in place since January 2021, when the regulator restricted access to these products due to concerns that they were too complex and carried high levels of risk.

The decision marks a significant shift in the UK’s crypto policy and is part of a broader framework to tighten investor protections while reopening access to certain digital asset markets.

UK retail investors to regain access from 8 October 2025

From 8 October 2025, UK retail investors will be able to buy and trade crypto ETNs on platforms approved by the FCA.

These will only be available through Recognised Investment Exchanges (RIEs), which are licensed investment platforms that meet the FCA’s regulatory requirements.

The regulator emphasised that all cETNs offered to retail investors must comply with strict financial promotion rules.

Companies will be required to provide information in a way that is clear, fair, and not misleading, ensuring customers are not encouraged to believe that such products are safer or more reliable than they actually are.

Why the FCA changed its stance on crypto ETNs

The FCA introduced the ban in January 2021 after concluding that cETNs were difficult for ordinary investors to understand, and that the risks of sudden losses were too high.

At that time, crypto markets were seen as volatile and immature.

However, the FCA now says that market conditions have changed. According to David Geale, who leads the FCA’s work on digital finance, the crypto industry has become more structured and better understood.

This has allowed the regulator to reconsider its position, opening the door for wider investor participation but with protections firmly in place.

No FSCS protection for crypto ETN investors

Despite the reopening, risks remain. The FCA warned that investors in cETNs will not be protected under the Financial Services Compensation Scheme (FSCS).

If a trading platform fails or a cETN collapses, retail investors will not receive any compensation.

The regulator highlighted that losses are possible, and that anyone choosing to invest in these products could lose their entire investment.

To help reduce risks, the FCA confirmed that the Consumer Duty rule will apply, requiring firms to act in their customers’ best interests and treat them fairly.

Crypto regulation framework continues to expand

The decision to lift the ban on cETNs is part of a larger effort by UK regulators to establish a clear framework for digital assets.

Alongside this, the FCA is preparing rules for stablecoins and other high-risk investments, ensuring that the fast-moving crypto market operates under stricter oversight.

By restoring access to crypto ETNs, the FCA is attempting to strike a balance between allowing retail investors more options while maintaining strong investor protections.

This development will likely play a key role in shaping the UK’s evolving crypto regulatory landscape.

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