Regulatory Shift in the UK: FCA Allows Crypto-Backed Exchange Traded Notes for Retail Investors
UK Financial Conduct Authority Lifts Ban on Retail Investors Trading Crypto ETNs
Starting from October 8, 2025, retail investors in the UK will gain access to regulated crypto Exchange-Traded Notes (ETNs) on FCA-approved Recognised Investment Exchanges (RIEs), marking a significant regulatory shift in the crypto market [1][2][3][5].
Until now, retail investors in the UK were barred from trading crypto derivatives and ETNs due to regulatory concerns. However, in 2024, the Financial Conduct Authority (FCA) allowed professional investors access to crypto ETNs via approved UK market segments [1].
Following a consultation in June 2025, the FCA decided to lift the ban for retail investors, effective October 8, 2025, provided crypto ETNs are traded on FCA-approved UK RIEs, ensuring regulatory standards and investor protections [1][3]. This move comes after the FCA reviewed the market and found that products are now easier to understand, and the market has become more stable [4].
The regulatory framework will require investment exchanges to obtain FCA recognition orders based on criteria such as protecting investors and ensuring market integrity [1]. Only certain UK exchanges approved by the FCA can offer these crypto ETNs to the public.
Notably, the FCA maintains the ban on crypto derivatives for retail investors to mitigate the risks and protect consumers [6]. The FCA is keeping a watch on the crypto market to decide if further changes are needed regarding derivatives [7].
The UK's FCA has also invited public feedback on rules for stablecoins and crypto custody, as part of wider rules for the crypto sector, covering areas like stablecoins, exchanges, lending, and staking [8].
The listings of ETNs backed by crypto assets like Bitcoin and Ether, from firms such as 21Shares, Invesco, and WisdomTree, launched on the London Stock Exchange in May [9].
It is important to note that market conditions can change rapidly, and it is encouraged to verify information on your own and consult with a professional before making decisions based on this content. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice.
By October 2025, retail investors in the UK will have a regulated market for crypto ETNs, while crypto derivatives remain banned. This move is expected to keep the UK up to date with countries like the US, Canada, and parts of Europe in terms of crypto regulations [7]. The Bank of England is also reconsidering its plans for a digital pound [10].
[1] UK Financial Conduct Authority [2] Standard Chartered [3] London Stock Exchange [4] Financial Times [5] Reuters [6] Bloomberg [7] CoinDesk [8] CryptoNewsZ [9] 21Shares [10] Bank of England
Starting from October 8, 2025, retail investors in the UK will invest in regulated crypto Exchange-Traded Notes (ETNs) on FCA-approved Recognised Investment Exchanges (RIEs), following the Financial Conduct Authority's (FCA) decision to lift the ban on trading such products [1]. Despite this, the FCA maintains the ban on crypto derivatives for retail investors to mitigate risks and protect consumers [6].
