Brian Brookshire Reacts as FCA Moves to End Crypto ETN Ban to Enhance UK Market Access

The UK’s Financial Conduct Authority (FCA) just dropped a bombshell that’s sending ripples across the crypto world. As of June 6, 2025, the FCA is proposing to lift its ban on offering crypto exchange traded notes (cETNs) to retail investors. This move, long anticipated by many in the crypto space, signals a major turning point for both investors and the UK crypto market at large.

Until now, crypto exchange traded notes were only accessible to professional investors in the UK. Retail traders were left on the sidelines, unable to access products that were already available in many other countries. This regulatory shift isn’t just about leveling the playing field, it’s about realigning the UK with global trends, encouraging responsible retail investing, and bolstering the nation’s competitive edge in the digital finance sector.

According to the FCA, this change will apply only to cETNs listed on FCA-approved Recognised Investment Exchanges (RIEs), ensuring an added layer of investor protection. In parallel, strict financial promotion rules will be enforced so that consumers understand the risks involved. It’s a move designed to unlock opportunity, without abandoning the guardrails.

What Are Crypto ETNs and Why Do They Matter?

Crypto exchange traded notes are debt securities that track the price of crypto assets like Bitcoin and Ethereum. Unlike direct crypto purchases on exchanges, ETNs allow investors to gain exposure without holding the underlying asset. This offers simpler tax implications, less custody risk, and exposure via traditional brokerage accounts. For the average investor, this is a massive step forward. 

Many people are curious about crypto but hesitant to deal with wallets, seed phrases, and unregulated platforms. cETNs allow them to invest in crypto markets the same way they would buy a stock or ETF. That simplicity could play a key role in improving financial inclusion and boosting the UK’s reputation as a crypto-friendly jurisdiction, something the government has consistently said it supports.

Why Did the FCA Ban Retail Access in the First Place?

Back in 2021, the FCA implemented a ban on the sale of crypto ETNs and derivatives to retail investors due to concerns about market volatility, fraud risk, and lack of investor understanding. Critics argued that this was overly paternalistic, denying individuals the right to participate in emerging financial opportunities. However, global attitudes have shifted. Markets like the US, Germany, and Switzerland already allow retail access to regulated crypto instruments. With increasing consumer education, more robust platforms, and rising demand, the FCA appears ready to adapt.

What This Means for the UK Crypto Market?

Lifting the ban is expected to revitalize the UK crypto market. Retail investors will finally gain legal access to products that have been out of reach for years. Brokerages and trading platforms are already preparing to expand their offerings, and crypto-focused investment firms are eyeing the UK as a fertile ground for growth. This could lead to a surge in retail crypto investing, introducing more liquidity and diversity to the market. But the FCA is treading carefully. Its decision is not a free-for-all, only ETNs listed on FCA-approved exchanges will be eligible, and all advertising must comply with strict promotion rules.

Is This the Start of a Broader Shift in UK Crypto Policy?

According to David Geale, Executive Director of Payments and Digital Assets at the FCA, this change is part of a broader vision. He stated that the aim is to “rebalance” the UK’s approach to risk, giving people the freedom to make their own investment decisions, while ensuring they have the tools to do so responsibly. This reflects a more mature stance on crypto: acknowledging both the risks and the need for innovation. If successful, this could pave the way for other reforms, such as broader ETF access, clearer tax frameworks, and improved infrastructure for digital asset custody.

A Win for Investors and Innovation

The FCA’s plan to lift the ban on crypto exchange traded notes for retail investors is more than a regulatory update, it’s a vote of confidence in the future of crypto in the UK. It sends a clear message that innovation and consumer choice can go hand in hand, even in high-risk markets. By maintaining protections while unlocking access, the FCA may have struck the right balance. For retail investors eager to explore crypto without diving into the complexities of direct ownership, this marks a welcome and long-overdue turning point. As the UK repositions itself as a global hub for digital finance, this move could well be remembered as the moment that turned cautious regulation into bold opportunity.

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