In a major policy shift, the UK Financial Conduct Authority (FCA) has announced it will allow retail investors to access crypto exchange-traded notes (cETNs) starting October 8, 2025. This ends a four-year retail ban on these high-risk products, which was originally imposed in 2021.

What’s Changing?

From October, regular UK investors can buy cETNs through platforms classified as Recognised Investment Exchanges (RIEs). These platforms must meet FCA approval standards, and the products offered will fall under strict financial promotion regulations to ensure investors receive fair and balanced information.

“This move is about expanding investor choice without compromising consumer protection,” said David Geale, director of retail banking and digital finance at the FCA.

Risks Still Exist: No Insurance or FSCS Protection

Despite the policy shift, investor protection remains limited. Crypto ETNs will not be covered by the Financial Services Compensation Scheme (FSCS). This means that in the event of a platform failure or product collapse, retail investors could lose all their money.

The FCA emphasized that crypto assets remain high-risk and volatile, and even under new rules, cETNs are not suitable for all investors.

Consumer Duty Rule Now Applies

To add further safeguards, the FCA will apply the Consumer Duty regulation to all cETN offerings. This mandates that financial firms act in the best interests of their customers, providing fair pricing, clear disclosures, and support throughout the customer journey.

Part of the UK’s Bigger Crypto Framework

This decision is part of the UK’s broader effort to modernize crypto regulation. Alongside this update, the FCA is developing additional rulebooks for stablecoins, digital assets, and other high-risk investment products.

The policy shift also reflects the UK’s ambition to become a crypto-friendly financial hub, especially after recent moves in the U.S. and EU toward clearer digital asset legislation.