UK to Allow Retail Crypto ETN Trading from October 2025 Under FCA Rules

The UK’s Financial Conduct Authority (FCA) has announced that it will permit retail investors to trade crypto exchange-traded notes (cETNs), marking a pivotal shift in the regulatory treatment of crypto assets [1]. The new rules, effective from 8 October 2025, require that cETNs be listed on FCA-approved UK-based investment exchanges, such as Recognised Investment Exchanges (RIEs), to ensure compliance with financial promotion standards [1]. These regulations are designed to provide investors with transparent information and prevent misleading sales practices [1].

David Geale, FCA executive director for payments and digital finance, noted that since the prior restriction of cETN access, the market has matured, and products have become more widely understood [1]. The FCA believes that by introducing more choice, it can empower consumers to make informed decisions, provided they are aware of the high risks involved [1]. However, cETN investments will not be covered by the Financial Services Compensation Scheme (FSCS), reinforcing that these remain high-risk, speculative products [1].

The decision aligns with the FCA’s broader strategy to develop a balanced regulatory framework for crypto assets. While the regulator has lifted the retail ban on cETNs, it has maintained a prohibition on crypto derivatives for retail investors and will continue to monitor market activity closely [1]. This approach aims to strike a balance between supporting innovation in the crypto space and ensuring investor protection, particularly given the high volatility of crypto markets [1].

Industry participants have responded with a mix of optimism and caution. Some argue that allowing retail access to cETNs is a necessary step for the UK to remain competitive in the global digital asset arena [4]. Several exchanges are already adjusting their platforms to accommodate the new regulations. For example, a London-listed firm is preparing to list on the AQSE Growth Market, potentially enhancing retail access to crypto-linked investments [5]. Similarly, Archax, an FCA-regulated digital asset exchange, has expanded its operations in anticipation of increased retail interest [6].

This change also reflects a more nuanced evolution of the FCA’s stance on crypto assets. In January 2021, the regulator prohibited the sale of derivatives and ETNs linked to unregulated cryptoassets to retail clients, a move widely regarded as a measure to prevent speculative trading without sufficient safeguards [1]. Now, the FCA is signaling a willingness to allow retail participation in a more structured and regulated format, indicating a shift toward a more mature market environment.

Retail investors are urged to conduct thorough due diligence before committing to cETNs. As with any investment in volatile assets, these instruments carry significant risk and are not guaranteed. The FCA’s updated rules emphasize the importance of transparency and consumer education, yet they do not eliminate the inherent risks of investing in crypto-linked products [1].

The development underscores the FCA’s ongoing efforts to create a regulatory environment that supports innovation while prioritizing investor protection. As the UK continues to shape its position in the global crypto market, the introduction of retail access to cETNs represents a notable step in this evolving landscape.

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[1] https://cryptobriefing.com/fca-maintains-retail-crypto-derivatives-ban/