The Financial Conduct Authority (FCA) has announced a significant shift in its policy, lifting the ban on the sale of crypto exchange traded notes (cETNs) to retail consumers. This move, effective October 8, 2025, reverses the previous ban and is part of a broader effort to adapt to the evolving digital asset landscape. The decision comes after a consultation period and is based on the regulator’s view that the cETN market has matured and is better understood.
- 👀 The ban on retail access to crypto ETNs, which has been in place since 2021, is being lifted.
- ✅ The new rules will require that these products are traded on a UK-based investment exchange that is approved by the FCA.
- ⚠️ Financial promotion rules and the Consumer Duty will apply, but consumers should be aware that these products are not covered by the Financial Services Compensation Scheme (FSCS).
- 🚀 The FCA will continue to monitor the market and the ban on retail access to cryptoasset derivatives remains in place.
Why this matters
This change signals a significant shift in the FCA’s approach to retail access to crypto-related products. It reflects a growing acceptance and understanding of these assets within the regulatory framework, but also a continued cautious approach. For consumers, this opens up a new avenue for investment in the crypto space, albeit with the associated risks.
Things to think about
- Review internal policies and procedures to ensure they are updated to reflect the new rules regarding the offering of cETNs to retail clients.
- Update risk disclosures and consumer communication to clearly state that cETNs are not covered by the Financial Services Compensation Scheme (FSCS).
- Ensure that all financial promotions and communications related to cETNs comply with the FCA’s financial promotion rules and the Consumer Duty.
- Provide robust training to staff on the new regulations and the characteristics and risks of cETNs.
- Continuously monitor for further regulatory updates and guidance from the FCA on digital assets.
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