FCA Opens UK Retail Access to Crypto Exchange Traded Notes

On 1 August 2025, the Financial Conduct Authority (FCA) issued a press release (the Press Release) announcing that UK retail consumers will soon be able to access crypto exchange traded notes (cETNs) admitted to trading on UK recognised investment exchanges (RIEs). 

Background 

The FCA’s decision follows a period of market evolution and regulatory engagement. In January 2021, the FCA imposed a ban on the sale, marketing, and distribution of derivatives and exchange traded notes referencing unregulated transferable cryptoassets to retail clients. 

However, as highlighted in the Press Release, the cryptoasset market has since matured, with products becoming more mainstream and better understood by both market participants and consumers. In March 2024, the FCA announced it would not object to RIEs creating UK-listed market segments for cETNs, but only for professional investors.

The Press Release is underpinned by the proposals set out in the FCA’s Consultation Paper 25/16 “Quarterly Consultation Paper No.48” (CP25/16), published in June 2025. Chapter 4 of CP25/16 proposed amendments to the FCA’s Handbook to lift the ban on the retail sale, marketing, and distribution of cETNs where admitted to a UK RIE. CP25/16 also proposed categorising these cETNs as Restricted Mass Market Investments (RMMIs), thereby subjecting them to the FCA’s financial promotion rules.

The FCA has confirmed that the Consumer Duty will apply to firms distributing these products to retail investors, and that there will be no coverage from the Financial Services Compensation Scheme (FSCS) for investments in cETNs.

Following CP25/16, the Board of the FCA approved the Conduct of Business (Cryptoasset Products) Instrument 2025 (the Instrument) on 31 July 2025, as noted in the FCA’s Handbook Notice 132 (the Notice). 

The Instrument 

The Instrument amends the FCA Handbook to enable the sale, distribution, and marketing of cETNs to retail clients, provided these products are admitted to trading on a UK RIE. The changes also categorise UK RIE cETNs as RMMIs, meaning they will be subject to the FCA’s financial promotion rules. 

The Instrument will come into force on 8 October 2025.

The Press Release, CP25/16, the Instrument and the Notice are available here, here, here and here, respectively.