LONDON – The UK’s Financial Conduct Authority (FCA) has announced a significant policy shift, confirming it will lift its ban on retail investors accessing cryptoasset-backed exchange-traded notes (cETNs) starting October 8, 2025. The decision, which follows a consultation launched in June, reflects the regulator’s view that the market for these products has become more mature.
Under the new rules, retail investors will be permitted to trade cETNs that are listed on FCA-recognised UK investment exchanges. This move opens a new, regulated avenue for individuals in the UK to gain exposure to the price movements of cryptoassets without directly owning the underlying tokens.
The policy change signals an evolution in the FCA’s approach to the digital asset space. The initial ban was put in place due to concerns over market volatility, valuation challenges, and the potential for financial crime. By reversing its stance on cETNs, the regulator acknowledges that the industry infrastructure and product integrity have improved.
However, the FCA has made it clear that this is a cautious step, not a complete deregulation. The authority confirmed that its existing ban on the sale of complex crypto derivatives to retail clients will remain firmly in place, distinguishing between exchange-traded notes and what it considers to be higher-risk derivative products.
In a strong message to consumers, the FCA emphasised the importance of understanding the inherent risks. Crucially, the regulator highlighted that investments in cETNs will not be protected by the UK’s Financial Services Compensation Scheme (FSCS). This means that if a cETN provider were to fail, investors could lose their entire investment with no recourse for compensation from the scheme.
The decision marks a balancing act for the FCA, aiming to provide UK investors with greater choice while reinforcing the message that crypto-related investments remain high-risk and speculative. As the 2025 implementation date approaches, potential investors are urged to conduct thorough research and consider their risk tolerance before participating in this newly accessible market.
