UK FCA Lifts Ban on Retail Crypto ETNs Starting Oct 8, 2025

* UK Financial Conduct Authority to permit retail access to crypto ETNs from October 8, 2025. * Ban on retail access to crypto derivatives will remain in place. On August 1, 2025, the UK’s Financial Conduct Authority (FCA) revealed plans to reverse its 2021 ban on retail access to cryptocurrency exchange-traded notes (ETNs). Starting October 8, 2025, retail investors can purchase and trade these financial products through approved exchanges. According to Cointelegraph on August 1, this significant regulatory pivot aims to broaden investment choices and reflects the growing maturity of cryptocurrency markets. This decision highlights the FCA's goal to offer consumers diverse investment opportunities while also implementing protective safeguards. Crypto ETNs are debt instruments that provide exposure to crypto assets without requiring direct custody of the cryptocurrencies, making them a simplified trading avenue for retail investors. Under the new framework, FCA-approved firms can market and distribute these ETNs; however, they must comply with strict financial promotion rules that inform consumers about potential risks. Despite this regulatory change, the FCA maintains a cautious approach. Investments in crypto ETNs will not qualify for protection under the Financial Services Compensation Scheme (FSCS), leaving retail investors exposed to higher risks with no way to get reimbursed for financial losses. Furthermore, the FCA will continue to prohibit retail investors from accessing crypto derivatives, reinforcing the agency's vigilance against speculative trading. As part of the announcement, David Geale, the FCA's Executive Director of Payments and Digital Finance, emphasized that the move reflects a growing need for accessible and understandable crypto investment channels, while also reiterating the importance of shielding consumers from harmful financial products. According to CoinMarketCap data on August 1 at 12:00 UTC, Bitcoin (BTC) was trading at $32,448, a 3.5% increase over the last 24 hours. Meanwhile, Ethereum (ETH) was priced at $2,318, marking a 1.9% gain over the same period.