The UK Financial Conduct Authority (FCA) has announced that it will lift the ban on retail access to cryptocurrency exchange-traded notes (ETNs), effective October 8, 2025.
Lifting the Ban on Retail Crypto ETNs
The UK FCA is set to reverse its ban on retail cryptocurrency ETNs, effective from October 8, 2025. This will allow retail investors legal access to crypto ETNs through FCA-approved exchanges like the London Stock Exchange. This regulatory shift indicates a maturity in the market.
Market Implications for Cryptocurrencies
With minor regulatory changes, increased market activity is expected. However, the FCA will maintain its ban on crypto derivatives for retail clients due to volatility concerns. Industry feedback emphasizes the need for caution amid regulatory changes.
Overall Evolution of Financial Regulation
The FCA's 2021 ban on retail crypto ETNs was part of a global trend of caution towards volatile digital assets. This has been common practice in major regions, such as the US, EU, and Asia. Coincu's research team anticipates that allowing retail ETN access may lead to a significant increase in trading volumes on the exchanges.
Lifting restrictions on retail access to crypto ETNs in the UK could open up new opportunities for retail investors while ensuring strict rules and investor protection.
