UK Tightens Bank Crypto Rules, Lifts ETN Ban

- Bank of England to limit banks' crypto exposure by 2026 - FCA to lift ban on retail investors purchasing crypto ETNs On June 18, 2025, CoinDesk reported that the Bank of England plans to introduce new regulations by 2026 to limit banks' exposure to crypto assets and ensure financial stability. The report included an announcement from David Bailey, an Executive Director of Prudential Policy at the Bank of England, made during the Risk Live Europe event in London, stating that the UK will implement more stringent regulations. These regulations are designed to encourage banks to keep their crypto exposure low and will follow the Basel Committee on Banking Supervision’s disclosure framework, which recommends that banks limit their investments in cryptocurrencies like Bitcoin to 1% of their capital. Additionally, the Financial Conduct Authority (FCA) announced it will lift its ban on retail investors purchasing crypto Exchange Traded Notes (ETNs). Between June 6 and June 11, 2025, Cointelegraph reported that this decision marks a significant shift in the UK's approach to crypto investments, aiming to boost economic growth and competitiveness. David Geale, Executive Director for Payments and Digital Finance at the FCA, stated that with this change, individuals can decide if a high-risk investment suits them, even with the potential for total financial loss. However, the FCA will maintain the ban on retail investors trading cryptoasset derivatives. For ETNs to become available to retail consumers, they must be traded on an investment exchange recognized by the FCA. According to CoinMarketCap on June 19, 2025, Bitcoin (BTC) was trading at $104,592.553 as of 22:09 UTC, and its 24-hour trading volume showed a -0.521% change.