The United Kingdom’s Financial Conduct Authority (FCA) has lifted its ban on retail access to cryptocurrency exchange-traded notes (cETNs). This regulatory change, effective from October 8, 2025, allows UK companies to offer cETNs to retail consumers. Previously, in January 2021, the FCA had restricted access to cETNs due to concerns about the volatility of cryptocurrencies and a perceived lack of legitimate investment need for retail investors. David Geale, FCA executive director, noted that the crypto market has evolved significantly since the ban, making these products more mainstream and better understood. Unlike cryptocurrencies, which are backed by assets like Bitcoin, cETNs are debt securities that do not have underlying asset backing. They offer exposure to physical crypto assets through regular brokers or banks but come with risks, including limited control over the assets. While cETNs are now allowed for retail investors, the FCA has not yet decided on the status of crypto derivatives, which remain banned. The authority continues to monitor market developments regarding high-risk investments.

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