Catenaa, Saturday, June 14, 2025- The United Kingdom’s Financial Conduct Authority (FCA) has proposed ending its four-year ban on crypto exchange-traded notes (ETNs) for retail investors, potentially reopening access to these digital asset-linked products as early as 2026.
The ban, implemented in 2021 amid concerns over consumer protection, volatility, and market manipulation, prevented everyday investors from purchasing crypto ETNs while allowing professional investors to continue trading them.
The FCA’s June 6 announcement signals a shift toward balancing innovation with investor safeguards.
If approved, crypto ETNs tied to assets like Bitcoin and Ether could list on FCA-regulated markets such as the London Stock Exchange, granting retail investors regulated exposure to crypto without holding the underlying coins. The proposal excludes crypto derivatives, which will remain banned for retail customers.
David Geale, FCA’s executive director of payments and digital finance, said the move reflects a recalibration of risk management, giving investors the choice to decide if high-risk crypto ETNs fit their portfolio, despite potential total loss of funds.
The proposal includes strict conditions for retail ETNs: products must trade on recognized investment exchanges and firms must comply with clear financial promotion rules, including plain-language risk disclosures and bans on misleading advertising.
Crypto ETNs, bank-issued debt notes tracking digital asset prices, are already available in the U.S. and EU, where demand for regulated crypto products grows steadily.
The FCA’s consultation runs through 2025 with a final decision expected early next year, aligning with UK government efforts to bolster the country’s role as a global hub for crypto innovation and regulated digital finance.
