tl;dr
The UK’s Financial Conduct Authority (FCA) will lift the ban on retail access to digital currency exchange-traded notes (cETNs) starting October 8, 2025. Previously limited to professional investors, cETNs are bond-like digital asset products that will now be available to retail consumers via FCA-ap...
The United Kingdom’s Financial Conduct Authority (FCA) will lift the ban on retail access to digital currency exchange-traded notes (cETNs) starting October 8, 2025. Until now, only professional investors in the U.K. could access cETNs, which are bond-like digital asset investment products. The FCA announced that firms will soon be able to offer these products to retail consumers, reflecting how the market has matured and become better understood over time.
Exchange-traded notes (ETNs) are bonds issued by banks that promise to pay returns tied to a specific index minus fees. Unlike digital currency exchange-traded funds (ETFs), ETNs do not hold the underlying assets directly. David Geale, the FCA’s executive director of payments and digital finance, explained that providing retail consumers access while ensuring protections helps investors make informed decisions regarding risk.
The FCA emphasized that any cETNs accessible to retail investors must be traded on FCA-approved, U.K.-based Recognised Investment Exchanges (RIEs), and must comply with financial promotion and consumer duty rules to protect investors and ensure proper information is provided. However, the FCA advised consumers to understand the risks involved before investing. Notably, the ban on retail access to cryptoasset derivatives will remain in place even after this change.
This policy shift contrasts with the FCA’s January 2021 decision to ban retail sales, marketing, and distribution of derivatives and ETNs linked to unregulated digital assets, which cited concerns about price volatility, market abuse, and uncertain asset valuations. In March 2024, the FCA allowed recognized investment exchanges to create a market segment for cETNs but restricted access to professional investors. By June 2025, reflecting global trends and U.S. support for digital assets, the FCA proposed ending the retail ban to boost U.K. competitiveness in the sector.
The move aligns with international advancements, especially following U.S. legislative support for stablecoins and other crypto measures. The FCA’s latest update is part of a broader push to build a robust regulatory framework in the U.K., including a “crypto roadmap” and proposals addressing stablecoins and digital asset custody, signaling growing regulatory acceptance of digital finance innovations.