UK Crypto Regulation Update – FCA Lifts Ban on Crypto ETNs for Retail Investors

The Financial Conduct Authority (FCA) has reversed its stance on crypto exchange-traded notes (cETNs), lifting a four-year ban for retail investors effective October 2025. The products will be accessible exclusively through FCA-approved Recognised Investment Exchanges (RIEs), marking a significant shift in the UK's regulatory approach to digital assets.

David Geale, the FCA's digital finance lead, cited improved market maturity and understanding as key factors behind the policy change. The 2021 ban, implemented due to concerns over complexity and risk, now gives way to a framework emphasizing investor protection through stringent financial promotion rules. Firms must provide clear, balanced information—avoiding misleading HYPE around inherently volatile instruments.