The UK’s Financial Conduct Authority (FCA) has officially lifted its ban on crypto exchange-traded notes (cETNs) for retail investors, marking a significant shift in its approach to digital assets. The decision, welcomed by industry stakeholders, aligns the UK with global efforts to establish itself as a crypto-friendly financial hub.
The regulatory change will come into effect from 8 October 2025, overturning the previous ban enforced in January 2021. The move comes amid increasing efforts to strike a balance between investor protection and innovation in the rapidly evolving crypto market.
A Step Toward Inclusivity and Market Maturity
Industry experts have described the FCA’s reversal as a sign that the regulator now recognises the growing maturity and legitimacy of crypto-related products. An FCA spokesperson stated that the change reflects how the crypto market has evolved and how products like cETNs are now better understood by both regulators and investors.
Ian Taylor, board adviser at CryptoUK and chief operating officer of HT Digital, expressed strong support for the decision. “We are delighted to see this reversal. Until now, the UK has been an outlier on ETNs. This change reflects the progress we’ve made toward introducing a more proportionate approach to consumer risk,” he said.
Taylor noted that CryptoUK, a leading trade association for the digital asset sector, has consistently lobbied for greater retail access to regulated investment tools such as ETNs, which allow users to gain exposure to crypto without holding the assets directly.
Empowering Retail Investors
The Payments Association also welcomed the move. Riccardo Tordera, director of policy and government relations at the UK-based payments body, emphasised that the intrinsic nature of crypto makes it accessible to everyone, regardless of location.
He argued that the FCA’s previous stance limited the UK’s potential as a global crypto leader. “The FCA ban on retail access to certain crypto products was hindering the UK’s chances of becoming a global crypto hub,” Tordera said. “This decision allows individuals to make their own choices at their own risk.”
Source: Jaime Rogozinski
He added that lifting the ban gives the UK a chance to regain its competitiveness in the global digital finance sector. “The FCA ban was extremely protective and was already smoothed when professional investors were allowed access last year. This is a welcome move.”
Mixed Reactions from the Community
While many in the crypto industry view the development as a positive step forward, the reaction has not been entirely optimistic. Critics argue that the UK’s enthusiasm for financial risk contrasts with its approach to other economic challenges.
WallStreetBets founder Jaime Rogozinski responded to the news with sarcasm, stating, “Britain loves financial risk — just not the kind that involves, say, vegetables or an industrial policy.” His comment reflects broader scepticism about whether this regulatory shift will translate into tangible economic benefits for the average citizen.
Crypto Derivatives Still Off Limits
Despite lifting the ban on cETNs, the FCA has made it clear that crypto derivatives will remain prohibited for retail investors. Products such as futures, options, and perpetual contracts continue to be classified as too high-risk.
In a statement released on Friday, the FCA confirmed its position: “The FCA’s ban on retail access to crypto asset derivatives will remain in place.” The regulator added that it will continue to monitor market developments and review its stance on high-risk investment products as needed.
UK’s Crypto Roadmap and Future Outlook
The FCA’s decision comes amid a broader strategy to cement the UK’s position as a global centre for financial innovation. With jurisdictions like the EU and the US pushing forward with clearer crypto regulation, the UK’s shift suggests a more open stance toward retail participation in digital finance.
By lifting the cETN ban, the UK signals its intention to create a more inclusive and competitive financial environment. However, the road ahead will require careful monitoring to ensure that investor protection keeps pace with innovation.
