The UK Financial Conduct Authority (FCA) is set to allow retail investors access to cryptocurrency exchange-traded notes (cETNs) beginning October 8, 2025. This change signifies a move towards a more open regulatory environment for cryptocurrency investments, while maintaining a focus on consumer protection.
Under the new regulations, retail consumers will be able to invest in cETNs that are exclusively traded on recognized investment exchanges approved by the FCA. This means that only those exchanges that meet FCA standards will facilitate the trading of these financial products. Additionally, financial promotion rules will be implemented to ensure that consumers receive the appropriate information without being enticed by misleading offers or unsuitable investment incentives.
The introduction of the Consumer Duty will also play a role in this development, as it will establish better protections for retail investors participating in these markets. However, it is important to note that investments in these cETNs will not be covered by the Financial Services Compensation Scheme (FSCS), meaning that consumers should conduct thorough research and understand potential risks before proceeding with investments.
This regulatory adjustment is part of the FCA’s broader efforts to create a structured framework for the cryptocurrency market. Despite these changes, the FCA’s ban on retail investors’ access to crypto-related derivatives will continue to remain in effect, reflecting a cautious approach towards high-risk investment products. The FCA has committed to ongoing oversight of market trends and investment strategies, allowing for adjustments and potential future changes as the market landscape evolves.
The previous ban on the sale and distribution of derivatives linked to unregulated cryptoassets was implemented in January 2021, highlighting the FCA’s commitment to investor safety. In June 2025, the authority began consultations to explore the possibility of lifting this ban on access to cETNs, which has culminated in the upcoming changes.
As the landscape around cryptocurrency continues to shift, the FCA’s latest announcement marks a significant step in balancing investor accessibility with necessary protections. Retail investors should carefully consider their investment choices and the associated risks, remaining aware of the regulatory framework guiding these new opportunities.