UK regulators have shifted their stance on cryptocurrencies by allowing access to exchange-traded notes, which may impact the digital asset market.
New FCA Decision for Crypto ETNs
The UK's Financial Conduct Authority (FCA) has decided to open access to crypto exchange-traded notes (ETNs) for retail investors starting October 8, 2025. This decision lifts a long-standing ban and is likened to the 'Big Bang' reforms of 1986 that transformed London’s financial sector.
Expectations from the New Digital Asset Market
While the FCA maintains a historically cautious approach toward cryptocurrencies, the latest shift signals recognition of the growing maturity of digital assets and the need to remain competitive globally. 'This is extremely significant and in some ways it could be seen as the first step in a seismic shift in UK financial markets in terms of the acceptance and adoption of digital assets more generally,' said Russell Barlow, CEO of 21Shares.
Challenges and Future Steps for Crypto Finance in the UK
While welcomed, the policy shift is seen as overdue by many. George Osborne, former UK Chancellor of the Exchequer, warned that the UK was falling behind the US, Europe, and Asia in crypto innovation. He urged faster regulatory reform to match the dynamism of global markets.
The FCA's decision to open access to crypto ETNs marks a significant step for the UK digital asset market, yet it raises questions about the future of this space and the necessity for further regulatory changes.
