UK to Allow Retail Access to Crypto ETNs by October 2025

The UK's Financial Conduct Authority (FCA) has announced that retail investors will be able to access crypto exchange-traded notes (cETNs) starting October 8, 2025. This authorization is limited to products traded on UK investment exchanges approved by the FCA. This decision marks a significant shift in the UK's regulatory stance toward crypto products offered to retail clients.

FCA Lifts Ban on Crypto ETNs for Retail Investors

In January 2021, the FCA prohibited the sale, marketing, and distribution of derivatives and exchange-traded notes referencing unregulated crypto assets to retail investors. The regulator now acknowledges the increased market maturity and improved investor understanding. This shift allows retail access while implementing protective measures.

Several conditions must be met to ensure investor safety:

• Crypto ETN trading must occur on recognized investment exchanges (RIEs) in the UK, authorized by the FCA.
• Promotions of these products must comply with existing financial promotion rules, helping investors make informed decisions and avoid misleading marketing.

David Geale, Executive Director of Payments and Digital Finance at the FCA, stated that this decision aligns with ongoing market developments, balancing consumer choice with necessary protections. As investment options grow, safeguards must strengthen, given the inherent risks in the crypto industry.

Important Note: Crypto ETNs accessible to retail investors will not be covered by the Financial Services Compensation Scheme (FSCS). This means investors will not be compensated in case of firm failure, underscoring the need for awareness of potential risks before investing.

FCA Cautious Approach to Retail Crypto Access

The FCA will maintain its broader ban on cryptoasset derivatives for retail clients, deeming these products too risky for the average consumer. However, the regulator will continue monitoring market trends.

This update follows the FCA's recent actions to clarify digital asset regulations. In March 2024, the FCA approved crypto-backed exchange-traded notes for professional investors, allowing exchanges like the London Stock Exchange to list these products. In June 2025, the FCA opened a consultation on lifting the retail ban on cETNs.

The decision aligns with the FCA’s crypto roadmap, which includes proposals on stablecoins and digital finance tools, aiming to modernize financial regulations while supporting innovation. Investment exchanges offering these products must adhere to strict regulatory standards to ensure robust investor protections.

Overall, this regulatory change introduces new opportunities for UK retail investors while maintaining a carefully regulated approach to digital assets. Codeum is dedicated to securing the blockchain space by providing services such as:

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