- FCA allows retail crypto ETN trading starting October 2025.
- Crypto derivatives remain banned for retail under FCA’s strict stance.
- New rules demand clear, fair communication from cETN providers.
The UK’s Financial Conduct Authority has confirmed it will lift the ban on retail trading of cryptoasset-backed exchange-traded notes. Starting October 8, 2025, retail investors will be able to trade cETNs listed on FCA-recognised UK investment exchanges.
Following a consultation process launched in June, the FCA describes the move as a response to a more mature market environment. Since the regulator banned the initial one in January 2021, they mentioned that they were worried about volatility and the lack of investor comprehension.
In this case, it states that the market has evolved and formed with enhanced protections and more visibility.
According to David Geale, Executive Director of Payments and Digital Finance at the FCA, consumers will have increased choice in terms of their investments while protection is still established. The regulator, however, reminded cETNs once again that they will not be given protection with the Financial Services Compensation Scheme.
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Access to crypto derivatives will remain restricted, as the FCA considers these high-risk and complex products unsuitable for unsophisticated investors.
Companies that sell cETNs to retail investors should follow the new financial promotion regulations. They must also comply with Consumer Duty by ensuring that communication is clear, clients are treated fairly, and good outcomes are demonstrated.
Regulator Responds to Market Maturity and Industry Pressure
The updated stance reflects a broader evolution in the digital asset investment landscape. According to the FCA, cETNs have become more mainstream and are now better integrated into regulated investment channels. This led to a change of policy, which continues to focus on investor safety.
At the same time, key players in the industry are also promoting the idea of more relaxed control. Coinbase recently launched a satirical campaign criticising the UK’s financial system, highlighting rising financial strain among households and calling for faster reform.
Coinbase CEO, Brian Armstrong, asserts that their campaign video has since been banned on UK TV but has picked up online attention.
Whereas Coinbase is pushing to modernise the operation, the FCA is standing its ground. It attempts to bring about additional access to retail investors only where obvious standards and directives can be imposed. The move to reinstate cETNs represents a cautious step forward, allowing limited access while keeping consumer protection at the core.
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