Published by Global Banking & Finance Review®
Posted on June 6, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleThe UK's FCA plans to lift the ban on retail investors buying crypto ETNs, aiming to support economic growth and digital asset competitiveness.
LONDON (Reuters) -Britain's financial regulator is to remove a ban on consumers buying crypto exchange-traded notes (ETNs), ditching its previous position of wanting to keep them out of the hands of retail investors.
The Financial Conduct Authority said on Friday that allowing retail investors to buy ETNs would support growth and competitiveness, in the latest sign that the UK is shifting its approach to crypto as the government seeks to grow the economy and support a digital assets industry.
Last year the FCA had approved the launch of crypto ETNs for professional traders but banned retail investors from access, calling the products "ill-suited" because of "the harm they pose".
"We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money," David Geale, executive director of payments and digital assets at the FCA, said in a statement on Friday. The proposal will now go out for consultation.
Britain in April published draft laws for bringing cryptocurrencies under compulsory regulation for the first time, aligning it with the United States' approach, rather than the European Union, which has built rules tailored to the industry.
To be sold to individual consumers, the ETNs will need to be traded on an FCA-approved investment exchange, the regulator said.
A ban on retail investors trading cryptoasset derivatives would remain, the watchdog added.
(Reporting by Tommy Reggiori Wilkes. Editing by Jane Merriman)
The UK's Financial Conduct Authority has decided to lift the ban on retail investors purchasing crypto exchange-traded notes (ETNs). This marks a shift in their previous stance on crypto investments.
The FCA had previously deemed crypto ETNs as 'ill-suited' for retail investors due to the potential harm they pose, citing the high risk of losing all invested money.
To be sold to individual consumers, the crypto ETNs must be traded on an FCA-approved investment exchange, ensuring a level of regulatory oversight.
Yes, while the ban on retail investors trading crypto ETNs is lifted, the FCA has stated that a ban on trading cryptoasset derivatives will remain in place.
The UK is aligning its cryptocurrency regulations more closely with the United States, moving away from the European Union's approach, as indicated by the publication of draft laws for compulsory regulation.
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