The Financial Conduct Authority (FCA) in the UK has announced plans to lift the ban on crypto exchange-traded notes (ETNs) for retail investors. This move could potentially allow retail investors in the UK to once again purchase crypto ETNs, something they have been prohibited from doing since the ban was put in place in 2021.
The FCA has opened the proposal for public comment as part of a broader effort to promote innovation in digital finance while ensuring consumer protection. If the ban is lifted, ETNs tied to popular cryptocurrencies such as Bitcoin and Ether could be listed on FCA-approved markets like the London Stock Exchange, giving retail investors access to the same investment opportunities as professionals.
This proposed change represents a shift in the FCA’s approach from caution to measured access. When the ban was first introduced, it was done in the interest of consumer protection due to concerns about the high volatility and risks associated with cryptoassets. However, the FCA now recognizes that the market has evolved and is seeking to provide investors with the choice to invest in high-risk assets like crypto ETNs.
The FCA’s proposal includes strict conditions and safeguards to protect retail investors. Only crypto ETNs listed on recognized investment exchanges would be permitted, and firms offering these products would need to comply with financial promotion rules. The goal is to ensure that investors are fully informed of the risks involved in investing in crypto ETNs and to prevent misleading advertisements.
The UK government has expressed its support for the FCA’s proposal, as it aligns with the country’s ambition to become a global hub for cryptoasset technology and innovation. Industry leaders have welcomed the FCA’s willingness to revisit restrictions on crypto ETNs, seeing it as a positive step for UK crypto policy.
The consultation period for the proposed changes will remain open until later this year, with a final decision expected in early 2026. If approved, crypto ETNs could soon make a return to the UK retail market, offering new regulated investment opportunities for everyday investors looking to gain exposure to digital assets.