The UK Financial Conduct Authority (FCA) has formally lifted its 2021 ban on crypto exchange-traded notes (cETNs) for retail investors.
In an Aug. 1 announcement, the regulator confirmed that these products will now be available on UK-regulated markets, marking a significant policy shift to broaden access to digital asset investments.
The original ban was introduced amid concerns over market volatility and consumer protection. At the time, the FCA argued that crypto ETNs carried “inherent risks, ” making them unsuitable for individual investors.
However, the regulator now believes the market has matured sufficiently to justify a controlled reintroduction, highlighting better infrastructure, increased transparency, and a more informed investing public.
David Geale, the FCA’s Executive Director of Payments and Digital Assets, said the regulator’s decision reflects changing market conditions. According to Geale, crypto investment products are now more comprehensible, and the supporting infrastructure has advanced.
This move mirrors global trends, particularly in the U.S., where crypto-linked ETFs—especially those tied to Bitcoin and Ethereum—have experienced rapid growth. The broader digital asset market has also gained momentum amid a more supportive regulatory environment under President Donald Trump’s administration.
Cautions remain
Despite the move toward inclusion, the FCA continues to urge caution.
According to the regulator, crypto ETNs remain unprotected by the Financial Services Compensation Scheme (FSCS), meaning retail investors will not be eligible for reimbursement in the event of losses.
To minimize consumer risk, providers of cETNs must comply with updated financial promotion rules and ensure all marketing materials are fair, transparent, and not misleading.
Geale also stressed the critical importance of transparency and investor education in the space. According to him, firms offering cETNs must help customers assess whether such instruments align with their financial objectives and risk profiles.
Meanwhile, the FCA stressed that it is still restricting retail trading of crypto derivatives. The regulator considers those products too complex and volatile for the general public.
This policy update is part of the UK’s broader push to create a structured regulatory environment for digital assets. As part of its long-term crypto roadmap, the FCA is expected to introduce additional proposals for investor protection and market integrity.
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