Game on now as FCA lifted their crypto ban last week12 Oct 2025 13:24
UK digital asset market poised for 20% growth as FCA lifts four-year retail ban on crypto ETNs, IG says
by James Hunt
Quick Take
The UK’s financial regulator officially lifted a ban on crypto exchange-traded notes on Wednesday, opening up access to retail investors for the first time.
UK investment firm IG Group said the country’s crypto market could see 20% growth following the move that puts it more in line with the U.S.
The Financial Conduct Authority, the UK's financial regulator, officially lifted its four-year retail ban on crypto exchange-traded notes on Wednesday, expanding availability beyond professional investors for the first time.
The move aligns the UK with countries such as the U.S., Canada, Hong Kong, and across the EU by enabling individuals to access crypto investment products, provided they are traded on an FCA-approved investment exchange.
"Allowing retail investors to gain exposure through UK-recognised exchanges keeps this activity within the regulatory perimeter, rather than pushing consumers offshore to less regulated environments," Elliptic Head of EMEA Policy and Regulatory Affairs, Mark Aruliah, told The Block. "But momentum matters — other regions such as the U.S. and Singapore continue to move at speed, and the UK must maintain that pace to remain competitive."
However, such products are yet to be listed on the London Stock Exchange, meaning retail investors still cannot buy them, and the ban on crypto asset derivatives for retail remains in place, though the regulator had said it will continue to monitor market developments and review its approach to high-risk investments.
“Today’s decision will not have been taken lightly but rather recognises that crypto ETNs are the safest and most sensible route to investing in crypto," Brett Hillis, partner and crypto regulation expert at international law firm Reed Smith, told The Block. "Looking ahead, I just can't see the FCA allowing retail access to crypto derivatives. These are complex products and, whatever its secondary objectives, the FCA takes its responsibility to consumers incredibly seriously, so I think these restrictions will remain in place for the foreseeable."
Unlike U.S. spot crypto ETFs, ETNs do not necessarily hold underlying assets directly. Instead, they are debt securities issued by financial institutions that promise to pay the holder a return tracking an asset's performance minus fees and expenses.
Firms offering these products to retail investors must comply with the Consumer Duty, which requires them to deliver good outcomes for customers. However, the products won't be covered by the Financial Services Compensation Scheme, which protects consumers when firms fail.
"I think we can expect the removal of restrictions to give the crypto market a boost. Indeed, crypto sales have reportedly increased already and, alongside other wider market reforms, reflect a drive to introduce more dynamism into the UK economy," Reed Smith's Hillis
Sign In
Follow the stocks
