FCA Lifts UK Retail Ban on Crypto ETNs

The UK Financial Conduct Authority (FCA) will lift its ban and permit retail investors to access crypto exchange-traded notes (cETNs) from October 8, 2025, aligning the UK with other major jurisdictions. cETNs must be traded on FCA-recognized UK investment exchanges, and firms are required to comply with strict financial promotion and Consumer Duty rules to ensure transparent and fair information for customers. cETNs will remain excluded from Financial Services Compensation Scheme (FSCS) coverage, so investors risk losing their entire investment. The FCA cites increased market maturity and improved consumer understanding as reasons for the change but will continue to prohibit retail access to crypto derivatives. This decision is part of a broader regulatory strategy, including recent proposals for stablecoin regulation. The FCA will continue to monitor these high-risk markets and urges caution for retail investors.