🇬🇧 FCA Plans to Lift Ban on Crypto ETNs for Retail Investors: A Fresh Opportunity for the UK Public. By ChainFabricNews

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Image source: Blockchain council

In a move that could reshape the way everyday people in the UK invest in crypto, the Financial Conduct Authority (FCA) has proposed lifting its long-standing ban on crypto exchange-traded notes (ETNs) for retail investors. This proposal, announced in early June 2025, is seen by many as a step toward making the UK's crypto market more inclusive and competitive.

But what does this really mean for you, me, and the average UK investor?

🔍 What Are Crypto ETNs—and Why Were They Banned?

First, let’s understand what we’re talking about.

Crypto ETNs are financial products that track the price of cryptocurrencies like Bitcoin or Ethereum. Unlike directly buying crypto from an exchange, ETNs allow you to invest through a regulated platform—similar to how you’d buy a stock or an ETF.

Back in 2021, the FCA banned retail investors from buying these products, saying they were too risky and complex for the general public. At the time, crypto markets were extremely volatile, and regulators feared that everyday investors could suffer huge losses.

💡 Why the FCA Is Changing Its Mind Now

Fast forward to 2025: the crypto landscape has matured. There’s better regulation, more public awareness, and growing interest from institutions. In this new context, the FCA believes that allowing access to well-structured crypto products—through regulated exchanges—could be safer than unregulated alternatives.

In simple terms, it’s like saying: “We’d rather people take risks in a controlled environment than go it alone in the wild west of the internet.”

The FCA says this change could support innovation while still protecting people from scams and unclear investments. But they’re not opening the floodgates just yet. Products will still be tightly regulated, and companies will have to follow strict advertising and risk disclosure rules.

🗣️ Mixed Reactions from the Crypto Community

Many in the industry have welcomed the move. Some see it as long overdue, especially since other countries like Germany and Switzerland already allow retail investors to access crypto ETNs.

A spokesperson from Kraken UK called the proposal a "positive signal" for crypto adoption in Britain. Others believe it could bring crypto investments into mainstream platforms like pension funds or ISAs in the future.

However, not everyone is cheering. Some experts warn this is just one small piece of the puzzle. They argue the UK still lacks clear regulations on stablecoins, crypto custody, and decentralized finance (DeFi)—areas where other countries are already making progress.

📅 What Happens Next?

The FCA is currently gathering public feedback until July 7, 2025. If the proposal moves forward, we might see these products available to retail investors by early 2026.

But remember, while this opens doors, investing in crypto is still risky. Prices can swing wildly, and you should only invest money you can afford to lose. As always, doing your own research and understanding the risks is key.

✅ Final Thoughts

The FCA’s move to lift the ban on crypto ETNs could bring new opportunities for UK investors who’ve been sitting on the sidelines. It's a sign that regulated crypto investing is becoming more accessible, without diving into the chaos of unregulated markets.

As crypto continues to evolve, smart regulation—not over-restriction—is likely the path forward. If done right, this change could put the UK back on the map as a serious player in the global crypto space. 

 

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