UK to lift crypto ETN ban for retail traders on October 8 – Details here!

Key Takeaways 

FCA will elevate the 4-year retail ban on BTC ETNs this October, because the UK pushes for full crypto regulation by 2026. Derivatives will nonetheless stay a no-go zone. 

The UK will elevate its four-year ban on retail entry to crypto Trade-Traded Notes (ETNs) ranging from the eighth of October 2025. 

Again in January 2021, the UK regulator, Monetary Conduct Authority (FCA), banned retail entry to Bitcoin [BTC] and different crypto exchange-traded funds (ETFs), additionally generally often called ETNs or ETPs.

Since then, solely skilled traders might entry these devices by acknowledged exchanges like Cboe or the London Inventory Trade.

FCA bends to mass crypto adoption

Now, the retail would quickly be part of skilled traders.

The regulator modified course as a result of crypto is now “extra mainstream” and “higher understood,” according to David Geale, FCA’s Government Director of Funds and Digital Finance. 

“Since we restricted retail entry to cETNs, the market has developed, and merchandise have grow to be extra mainstream and higher understood.”

That stated, FCA confused that retail traders should assess dangers on their very own. These merchandise received’t be lined by the Monetary Providers Compensation Scheme (FSCS).

The transfer adopted a current proposal because the company seeks to set up a transparent regulatory framework for the sector. 

Restriction on crypto derivatives stays

For now, derivatives and leveraged merchandise—instruments that amplify beneficial properties or losses—will stay unavailable to retail customers.

“The FCA’s ban on retail entry to cryptoasset derivatives will stay in place.”

That stated, the retail entry will add extra inflows for BTC, with Charlier Morris, Founding father of funding analysis agency, Byte Tree, stating that it will likely be “large”.

Supply: Charlie Morris/X

General, the UK has renewed momentum for regulatory readability within the sector because the U.S. additionally races to do the identical by the top of 2025.

For the UK, although, the brand new crypto regime is anticipated to go stay in 2026. 

Supply: FCA