FCA Reverses Crypto ETN Ban for Retail Investors Amid Market Maturation

The UK Financial Conduct Authority has lifted its 2021 prohibition on crypto exchange-traded notes for retail investors, marking a significant policy shift as digital assets gain mainstream traction. The regulator cites improved market understanding and product maturity as key drivers behind the decision.

David Geale, the FCA's payments and digital finance chief, emphasized consumer choice with safeguards. "Products have become more mainstream and better understood since our restrictions," he noted. The changes take effect October 2025, requiring all offerings to comply with strict promotion rules and Consumer Duty protections.

Retail access will be limited to UK-regulated investment exchanges, with mandatory risk disclosures and banned incentive marketing. Notably absent is FSCS coverage—investors bear full responsibility for potential losses when crypto markets decline or issuers fail.