After four years of keeping retail investors away from crypto ETNs, the Financial Conduct Authority has finally changed its tune. Starting October 8, 2025, everyday Brits can get their hands on crypto Exchange Traded Notes. About time, some would say.
The FCA’s decision comes wrapped in bureaucratic paper – formally called the “Conduct of Business (Cryptoasset Products) Instrument 2025.” Fancy title for simply admitting the market’s grown up.
Bureaucrats finally admitting what we’ve known all along – crypto’s grown up while regulators were busy drafting fancy titles.
These products now fall under “Restricted Mass Market Investments.” More alphabet soup from regulators. The FCA Board made this official when they approved the instrument on July 31, 2025.
Why the change of heart? The FCA claims crypto’s gone mainstream. More people understand it now.
They listened to industry feedback too, shocking as that may seem. Truth is, they probably couldn’t ignore the growing pressure to compete globally in crypto markets. Many investors prefer the centralized exchange model for its user-friendly interface and regulatory compliance.
Don’t get too excited though.
There are strings attached. These ETNs must trade on FCA-approved UK exchanges. No wild west stuff. The FCA is implementing Consumer Duty requirements to ensure firms act in the best interests of retail investors. Firms have to issue risk warnings, no flashy incentives allowed. And you’ll need to pass an “appropriateness test” before investing. Whatever that means.
The biggest catch? No safety net here.
When things go south – and with crypto, they often do – don’t expect the Financial Services Compensation Scheme to bail you out. You’re on your own, buddy.
For investment firms, this creates a bizarre balancing act.
New customers mean new money, but the compliance headaches might make some wonder if it’s worth it.
Important to note: crypto derivatives remain off-limits for retail folks.
The FCA’s watching closely, ready to slam the door shut again if things get messy.
This is part of the UK’s broader crypto strategy.
They’re trying to look progressive while keeping their regulatory reputation intact. A tough dance.
Will it work? The market will decide after October 2025.
Until then, firms have time to get their act together before the retail crypto rush begins.
