Firms will soon be able to give retail consumers access to crypto exchange traded notes (cETNs), under changes announced by the FCA.
Crypto ETNs that retail consumers can access must be traded on an FCA-approved, UK-based investment exchange (a Recognised Investment Exchange or RIE). Financial promotion rules will apply so consumers get the right information and aren’t offered inappropriate incentives to invest.
David Geale, executive director of payments and digital finance at the FCA, said:
'Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring there are protections in place. This should mean people get the information they need to assess whether the level of risk is right for them.'
The Consumer Duty[3] will apply to firms offering these products to retail investors. However, there won’t be coverage from the Financial Services Compensation Scheme (FSCS)[4]. Consumers should ensure they understand the risks before deciding to invest.
This is the latest development as the FCA continues to establish a regulatory framework for crypto. We have outlined our crypto roadmap[5] and recently published proposals on stablecoins as well as other aspects of the regime.
The FCA’s ban on retail access to cryptoasset derivatives will remain in place. The FCA will continue to monitor market developments and consider its approach to high-risk investments.
Notes to editors
- In January 2021, the FCA banned[6] the sale, marketing and distribution of derivatives and ETNs that reference unregulated transferable cryptoassets to retail clients.
- In March 2024, the FCA announced[7] we would not object to requests from recognised investment exchanges (such as Cboe or the London Stock Exchange) to create a UK listed market segment for cryptoasset-backed exchange traded notes (cETNs) for professional investors.
- In June 2025, the FCA launched a consultation[8] on proposals to lift the ban on retail access to cETNs.
- The FCA grants recognition orders to investment exchanges in the UK to make sure they meet regulatory standards. This power is provided under the Financial Services and Markets Act 2000 for the FCA to consider applications from UK entities (a body corporate or an unincorporated association) for recognition as a UK recognised body. Examples of recognition requirements include equivalent protection for investors.
- The change will come into force on 8 October 2025.
- Read Handbook Notice 132 (PDF)[9].