The UK Financial Conduct Authority (FCA) has announced that it will grant individual investors access to crypto-backed exchange-traded notes (ETNs) from October 8, 2025.
However, this access will be limited to products traded on FCA-approved, UK-based recognized investment exchanges (RIEs). The existing ban on crypto derivatives products will remain in place.
The FCA emphasized that this new move offers investors greater choice, but they will not be protected under the Financial Services Compensation Scheme (FSCS). This means investors will not have government-backed protection in the event of a loss. Furthermore, product promotions will be subject to financial promotion rules, preventing the offering of unsuitable incentives to consumers.
David Geale, executive director of the FCA's payment systems and digital finance unit, said:
“Since restricting retail investor access, the cryptocurrency ETN market has evolved; products are more widely available and better understood. This allows us to offer consumers more choice while ensuring the necessary protections are in place. This way, people have access to the information they need to assess whether the risk level is appropriate for them.”
Under the new regulations, companies offering these products to investors will be subject to Consumer Duty rules. This requires companies to treat consumers fairly and offer products tailored to their needs.
*This is not investment advice.
