The UK Financial Conduct Authority (FCA) has announced that, starting October 8, 2025, it will lift its long-standing ban on the sale of crypto exchange-traded notes (ETNs) to retail investors.
The move marks a significant shift in the UK’s regulatory stance toward digital assets, expanding access for everyday investors to crypto-linked financial products on regulated platforms. Crypto ETNs, which track the price of underlying digital assets such as Bitcoin or Ethereum, were previously restricted due to concerns about volatility and investor protection.
While the new framework provides broader access, safeguards remain in place. Retail investors will be required to undergo a suitability and risk assessment before gaining exposure to crypto ETNs. Additionally, the FCA clarified that investments in crypto will not be protected by the UK’s Financial Services Compensation Scheme (FSCS), meaning that losses from market downturns or exchange failures will fall entirely on investors.
Industry analysts note that this regulatory adjustment may boost the legitimacy of crypto investment products in the UK while aligning with the growing global trend of integrating digital assets into mainstream financial markets. However, they also caution that the combination of high volatility and limited protections could still pose risks for inexperienced investors.
With the UK government actively positioning London as a global hub for digital finance, the FCA’s decision to lift restrictions on crypto ETNs is being viewed as a step toward balancing innovation with regulatory oversight.
