UK to Reopen Retail Crypto ETN Access via Regulated Exchanges from October 8

The UK Financial Conduct Authority (FCA) has announced that retail investors will regain access to crypto exchange-traded notes (ETNs) starting October 8, 2025, ending a four-year restriction on these products [1]. The decision, outlined in a press release, allows retail investors to purchase crypto ETNs provided the products are listed on FCA-recognised, UK-based investment exchanges known as Recognised Investment Exchanges (RIEs). These exchanges must comply with UK financial promotion rules to ensure retail investors are not misled by aggressive marketing [1].

David Geale, the FCA’s executive director of payments and digital finance, emphasized that the market for crypto ETNs has matured significantly over the past few years, with products becoming more mainstream and better understood by the general public. He noted that the move provides consumers with more choice while maintaining essential protections [1]. However, the FCA reiterated that these products remain outside the scope of the Financial Services Compensation Scheme (FSCS), meaning investors must assess the risks independently. Firms offering the products must adhere to the Consumer Duty, which requires them to act in their clients' best interests [1].

This change marks a significant shift in the FCA’s approach to regulating cryptoassets. Over the past few months, the regulator has signaled a more flexible stance, including the allowance of crypto ETNs for professional investors in March 2024 and a consultation on lifting the retail ban in June 2025 [1]. The FCA’s broader strategy includes developing a structured regulatory framework for the crypto market, aligning with global standards while managing the risks associated with high-volatility assets [1].

Laurent Kssis, CEO of CEC Capital, welcomed the decision, calling it a long-overdue step toward harmonizing UK regulations with international standards. He noted that the FCA’s decision aligns the UK with global best practices and offers retail investors a safer, more transparent way to access the crypto market through regulated exchanges [1]. Kssis also highlighted that the requirement for crypto ETNs to be listed on RIEs ensures institutional-grade oversight and transparency, which are absent in many unregulated crypto platforms [1].

Despite the easing of restrictions, the FCA has maintained its ban on retail access to cryptoasset derivatives, reaffirming its commitment to cautious regulation. The agency stated it would continue to monitor developments in product safety, investor behavior, and international regulatory approaches to ensure its framework remains robust [1].

The decision to reopen retail access to crypto ETNs follows a gradual policy evolution by the FCA. Initially, the regulator imposed a ban on the sale and marketing of crypto derivatives and ETNs to retail clients in January 2021. Over the past 18 months, the FCA has softened its stance, allowing professional investors to access crypto ETNs on regulated exchanges and initiating consultations on broadening access to retail investors [1].

The FCA’s latest move signals a broader acceptance of crypto-linked financial products in the UK, provided they are offered under a clear regulatory framework. By allowing retail investors to access crypto ETNs through regulated exchanges, the FCA aims to balance innovation and investor protection. The regulator will continue to evaluate the effectiveness of its policies and adjust as necessary in response to market developments [1].

Source: [1] FCA to Reopen Retail Access to Crypto ETNs from October 8 (https://cryptonews.com/news/fca-to-reopen-retail-access-to-crypto-etns-from-october-8/)