- The UK lifted its four-year ban on crypto exchange-traded notes (ETNs) for retail investors, effective October 8, 2025.
- The Financial Conduct Authority (FCA) said the “market has evolved” and that crypto products are now better understood and more mainstream.
- Crypto derivatives still remain barred for retail investors, and ETNs won’t be covered by the Financial Services Compensation Scheme.
On October 8, 2025, the FCA officially lifted the ban on retail access to crypto exchange-traded notes (cETNs) in the U.K. In its press release, the FCA stated that when retail access was restricted in 2021, crypto ETNs were judged to be “ill-suited for retail consumers” due to risks and complexity. Now, the view is that the market has matured, infrastructure has improved, and investor understanding has increased.
The announcement stemmed from regulatory changes first flagged in August 2025, when the FCA released a public consultation outlining plans to open up retail access to ETNs.
What are crypto ETNs & why were they banned?
Crypto ETNs are debt instruments that allow investors to gain exposure to the price movements of cryptocurrencies like Bitcoin, Ethereum without directly holding the assets. The issuer typically holds the underlying crypto or hedges exposure, and investors own claims on the ETN’s performance.
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In January 2021, the FCA banned the sale, marketing, and distribution of derivatives and ETNs referencing unregulated cryptoassets to retail clients. Back then, they cited concerns about volatility, lack of consumer understanding, potential harm, and insufficient protection.
How have the new rules changed?
With the ban lifted, crypto ETNs must now be listed on FCA-approved U.K. recognised investment exchanges. Financial promotion rules will apply to ensure appropriate information is provided and to curb aggressive marketing. HMRC has confirmed that crypto ETNs can be held within ISAs (Individual Savings Accounts), adding a tax-efficient route for investors.
However, some restrictions remain like crypto derivatives (futures, options) will still be prohibited for retail investors under current rules. Also, ETNs offered to retail will not be eligible for compensation under the FSCS if things go wrong.
Critics have warned that although the ban is lifted, operational delays may persist. Exchanges and the FCA must accept prospectuses and then finalize listing segments, which could push actual trading availability to October 13 or later.
