UK U-Turn on Retail Access to Crypto ETNs Signals Push to Become a Global Crypto Hub

The FCA has reversed its retail ban on crypto ETNs — a move industry leaders say puts the UK back in the global crypto conversation.

In a major policy shift, the United Kingdom’s Financial Conduct Authority (FCA) announced on Friday that it will lift its ban on crypto exchange-traded notes (cETNs) for retail investors, with the changes set to take effect from October 8,

2025.

This decision marks a reversal of the 2021 ban, which had cited extreme price volatility and a "lack of legitimate investment need" as reasons for blocking retail access to cETNs.

Now, the FCA says it recognizes that the crypto market has matured, and crypto-related products are better understood — prompting a more proportionate approach to regulation.

Industry Reactions: “A Welcome Move Toward Competitiveness”

The policy reversal has drawn strong responses from UK industry leaders and stakeholders, many of whom see it as a long-overdue step toward crypto innovation.

Ian Taylor, board adviser at CryptoUK and COO at HT Digital, said:

“Until now, the UK has been an outlier on ETNs. This change reflects the progress we’ve made toward introducing a more proportionate approach to consumer risk.”

Taylor added that CryptoUK has actively lobbied for more inclusive access to regulated investment products, such as ETNs, which allow investors to track the performance of crypto assets without directly owning them.

Riccardo Tordera, Director of Policy at The Payments Association, echoed this sentiment:

“The FCA ban on retail access to certain crypto products was hindering the UK’s chances of becoming a global crypto hub.”

Tordera emphasized the decentralized nature of crypto, suggesting that barring retail investors from these products was counterproductive to the UK’s ambition to lead in the digital asset space.

“This is a welcome move. The FCA ban was extremely protective and was already smoothed when professional investors were allowed access last year,” he said.

“Now individuals can make their own choices — at their own risk.”

Source: Jaime Rogozinski

Related: UK to Require Crypto Firms to Report All Customer Transactions from 2026

Satire and Skepticism

Not everyone responded with optimism. WallStreetBets founder Jaime Rogozinski commented sarcastically on the UK’s sudden embrace of retail financial risk:

“Britain loves financial risk — just not the kind that involves, say, vegetables or an industrial policy.”

The remark highlights ongoing tensions around the UK’s economic priorities and the perceived inconsistency of its regulatory actions.

Crypto Derivatives Still Off-Limits

Despite the new freedoms around ETNs, the FCA made it clear that crypto derivatives remain banned for retail investors.

“The FCA’s ban on retail access to crypto asset derivatives will remain in place,” the regulator stated.

This includes futures, options, and perpetual contracts, which are often used for leveraged bets and carry a higher degree of risk.

The FCA added that it will continue monitoring market developments and may revise its stance on high-risk crypto investments in the future.

A Step Toward Global Alignment?

By lifting the ban, the FCA aligns more closely with major global financial centers, many of which allow retail access to similar structured crypto products.

This move could help the UK:

• Enhance its global competitiveness

• Foster responsible innovation

• Strengthen its reputation as a digital asset-friendly jurisdiction

With the October 8 policy shift, retail investors in the UK will once again be able to access crypto ETNs through regulated platforms — restoring a level of financial autonomy that many in the industry believe should never have been revoked.

Related: UK Set to Become “Safe Harbor” for Crypto With New Draft Rules