Retail Investors Could Soon Ride the Crypto Wave
The United Kingdom’s financial watchdog is considering a major policy reversal that could reopen a key part of the crypto investment market to everyday consumers. In a move aimed at boosting the nation’s competitiveness and catching up with global peers, the Financial Conduct Authority (FCA) is proposing to lift its longstanding ban on crypto exchange-traded notes (cETNs) for retail investors.
Currently, cETNs—debt-based products tied to the price of digital assets—are only available to professional investors in the UK. The FCA’s latest consultation paper, released on June 6, could change that, suggesting individual investors be granted access under strict conditions, including that trading be conducted on FCA-recognized investment exchanges.
“This consultation demonstrates our commitment to supporting the growth and competitiveness of the UK’s crypto industry,” said David Geale, executive director of payments and digital finance at the FCA. “We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money.”
Closing the Global Crypto Gap
The proposal is part of a broader push to bring the UK’s regulatory stance in line with that of other major jurisdictions. Countries such as the United States, Canada, Hong Kong, and the European Union already allow retail access to crypto-related financial products. The FCA’s suggested change could help level the playing field and reinforce the UK’s image as a welcoming environment for innovation in financial technology.
The timing is also significant. The consultation period is open until July 7, 2025, and comes as global crypto frameworks solidify. The EU’s Markets in Crypto Assets (MiCA) regulation came into full effect in January, and the United States has stepped up its own crypto initiatives under President Donald Trump’s pro-innovation administration.
ETNs Explained: High Risk, High Potential
Unlike the more widely publicized spot Bitcoin ETFs, which hold actual assets, ETNs are unsecured debt instruments. Investors don’t own the underlying crypto. Instead, they hold a bank-issued promise to pay a return based on a crypto index, minus fees. This structure increases the risk for investors, as payouts depend entirely on the issuer’s creditworthiness.
It’s this risk—combined with volatile crypto markets—that led the FCA to impose a retail ban on cETNs and other digital asset derivatives in January 2021. At the time, the regulator cited investor harm as a primary concern. That stance softened slightly in March 2024, when the FCA allowed professional investors to access cETNs. Now, the regulator appears ready to go further.
Caution Remains: Guardrails Will Stay in Place
Despite this potential opening, the FCA has made clear that existing safeguards will remain in place. If cETNs are approved for retail, all associated marketing and promotion would still fall under the UK’s stringent financial promotion rules. This means providers must clearly communicate the risks involved and are barred from offering inappropriate incentives.
Importantly, while the retail cETN ban may be lifted, the prohibition on digital asset derivatives for retail investors will remain in force, according to the FCA. The regulator emphasized that it will continue monitoring developments in this space and will adjust policy as needed.
Crypto Comeback Part of Bigger UK Plan
The cETN proposal marks another step in the UK’s evolving digital asset strategy. In April, Chancellor of the Exchequer Rachel Reeves reaffirmed the government’s commitment to becoming a global leader in crypto and financial innovation.
“Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers,” Reeves said in an April 29 statement. “Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK.”
Brits Lead Global Surge in Crypto Ownership
This ambition is backed by data: the UK is reportedly leading the world in new digital asset ownership in 2025, surpassing even traditionally high-adoption countries like the U.S. and Singapore. That momentum may well drive the FCA to adopt a more balanced, opportunity-focused regulatory approach.
Eyes on July: Will FCA Greenlight Retail Crypto Notes?
Though the FCA has not specified a timeline for implementing any changes, the outcome of the consultation could pave the way for individual investors to participate more freely in crypto markets—albeit with guardrails firmly in place.
As UK regulators and lawmakers align on promoting both growth and protection, the nation appears poised to transform its crypto policy into one that is as ambitious as it is cautious. The proposed lifting of the cETN ban could be the clearest signal yet that Britain wants in on the next phase of digital finance—and wants its people to have the choice to participate.
