UK Allows Retail Access to Crypto ETNs, Aims to Become Crypto Hub

August 6, 2025 — The UK’s Financial Conduct Authority (FCA) has lifted its ban on crypto ETNs for retail investors. This move supports the UK’s push to become a global crypto hub.

FCA Lifts Ban on Crypto ETNs for Retail

The FCA has reversed its 2021 decision that blocked retail investors from accessing crypto exchange-traded notes (ETNs). The updated rule will take effect on October 8.

Back in 2021, the FCA banned ETNs over concerns about volatility and investor risk. However, the regulator now says the market has matured. According to the FCA, crypto products are better understood today, making it safer for individuals to invest.

Industry Welcomes the Decision

Crypto industry voices praised the move. Ian Taylor, board adviser at CryptoUK, said this puts the UK in line with global markets. He believes the change shows real progress in how the UK handles crypto regulations.

Riccardo Tordera from The Payments Association agreed. He said banning ETNs had hurt the UK’s competitiveness. Now, retail investors can make choices “at their own risk,” which aligns with the open nature of crypto.

Derivatives Still Off Limits

Despite the policy shift, not all crypto products are open to retail.

The FCA made it clear: crypto derivatives like futures and perpetual contracts are still banned for individual investors.

The regulator said it will keep monitoring the market and may review its stance in the future. For now, only ETNs are getting retail approval.

UK Strengthens Its Crypto Hub Ambitions

This reversal supports the UK’s larger goal, to become a leading digital asset hub.

For years, UK regulators were seen as overly cautious. Now, by reopening retail access to regulated crypto products, the UK is showing a more balanced approach.

While some remain skeptical, most see this as a step in the right direction.