The UK’s top financial regulator has officially lifted its ban on cryptocurrency exchange-traded notes (cETNs) for retail investors, marking a major shift in its stance on digital asset products. Starting October 8, 2025, companies can once again offer these crypto-linked investment products to the public, the Financial Conduct Authority (FCA) confirmed Friday.

The FCA initially banned cETNs in January 2021 due to concerns over volatility and investor protection. However, the agency now says the market has significantly evolved, with crypto products becoming more mainstream and better understood. “Since we restricted retail access to cETNs, the market has evolved,” said David Geale, FCA’s executive director of payments and digital finance.

Unlike crypto ETFs, which are backed by underlying assets like Bitcoin, cETNs are debt securities. They provide exposure to crypto markets through traditional financial channels like brokers or banks, though they carry certain risks including limited investor control. Leading platforms like Bitpanda emphasize the importance of using trusted issuers to minimize risks.

Despite the move, the FCA continues to uphold its ban on crypto derivatives—such as futures, options, and perpetuals—citing ongoing concerns over high-risk investments. These products, although widely traded globally, remain off-limits to UK retail investors.

Meanwhile, across the Atlantic, U.S. regulators recently approved “in-kind” crypto ETF redemptions, a back-end process improvement expected to streamline fund operations. While the change won’t directly impact retail traders, analysts believe it signals growing institutional acceptance of crypto assets.

With both UK and US regulators signaling a more mature approach to crypto investment products, the financial industry may be entering a new phase—one that treats crypto as a serious, regulated asset class rather than a speculative outlier.