Thomas Daniels
The UK’s Financial Conduct Authority (FCA) has formally reversed its retail ban on crypto exchange‑traded notes (cETNs), effective October 8, 2025. Originally imposed in January 2021 on grounds of “extreme volatility” and an alleged “lack of legitimate investment need,” the prohibition has now been lifted, allowing retail investors direct exposure to regulated crypto products .
According to Riccardo Tordera, Director of Policy and Government Relations at The Payments Association, the decision grants UK individuals the autonomy to invest at their own risk, aligning the country with global norms for digital‑asset markets . Industry groups welcomed the shift. Ian Taylor, COO of HT Digital and advisor at CryptoUK, stated the UK had been an outlier in its restrictive approach to ETNs, and this reversal signals a more proportionate strategy toward consumer risk .
Tordera emphasized that the previous restriction had hindered the UK’s competitiveness and its goal to become a digital‑asset hub. Now that professional investors were already permitted access, extending retail availability was a logical next step .
However, skeptics remain vocal. Jaime Rogozinski, founder of WallStreetBets, quipped satirically that “Britain loves financial risk — just not the kind that involves, say, vegetables or an industrial policy.” Such commentary underscores concerns about the UK’s broader regulatory stance on crypto risk .
Despite this progressive move, the FCA confirmed that crypto derivatives—including futures, options, and perpetual contracts—will remain prohibited for retail investors. The regulator has pledged to continue monitoring market developments and maintain a cautious approach toward high‑risk instruments .
