UK FCA Considers Reinstating Crypto ETNs for Retail Investors
Update (June 6, 2025, 1:20 pm UTC): This article has been revised to include insights from Kraken’s UK General Manager, Bivu Das.
The Financial Conduct Authority (FCA) in the United Kingdom has suggested the removal of its ban on cryptocurrency exchange-traded notes (ETNs) for retail investors.
In an announcement made on June 6 and shared with Cointelegraph, the FCA mentioned that the proposed amendment would enable individual consumers to invest in crypto ETNs, as long as they are listed on an FCA-approved investment exchange.
“We aim to reassess our risk approach, and lifting the ban would empower individuals to decide if such a high-risk investment suits them, given the potential to lose their entire investment,” stated David Geale, the executive director of payments and digital assets at the FCA.
Diego Ballon Ossio, a partner at the law firm Clifford Chance, remarked that this decision “aligns perfectly with the UK’s goal to establish itself as a prominent jurisdiction in the crypto sector,” and added that it “will not only provide retail investors with access to crypto assets but also signify that the UK is welcoming crypto.”
Bivu Das, Kraken’s UK General Manager, expressed to Cointelegraph that “this represents a significant step forward for the UK’s crypto ecosystem.” He further stated:
“The repeal of the crypto ETN ban is a positive development from the FCA, acknowledging that the market has evolved significantly and that previous restrictions are no longer relevant.”
Ian Taylor, board adviser to CryptoUK, the trade association for the UK digital assets industry, and COO of onchain auditor HT Digital, praised the announcement. He told Cointelegraph that the organization hopes “this action will enhance consumer protection.”
Related: FCA-registered BCP launches British pound stablecoin
FCA actively working on crypto regulation
The FCA is currently developing a new version of its crypto regulatory framework. In late May, the regulator sought public input on proposed rules for stablecoins and cryptocurrency custody.
These ongoing efforts are part of a broader initiative following UK Chancellor of the Exchequer Rachel Reeves’ suggestion of a “comprehensive regulatory regime” designed to position the country as a leader in the crypto industry.
Recent reports indicate a growing need for such regulations, given that the United Kingdom is set to lead globally in cryptocurrency ownership among its population in 2025, surpassing economies like the United States.
Crypto ownership percentage in the US, UK, France, Singapore, Italy, and Australia. Source: Gemini
Related: Zebec acquires compliance firm Gatenox ahead of MiCA, FCA regulatory push
Crypto political contributions raise concerns among UK lawmakers
During a June 5 debate in the UK House of Commons, Cabinet Office Minister Pat McFadden stated that “as financial systems evolve, so must the regulations we have to ensure transparency and integrity in elections.” MP Sarah Olney voiced concerns about political parties accepting crypto donations:
“Members may have noticed that certain political parties have started to accept bitcoin donations — I would not suggest this is an attempt to bypass transparency requirements for donations.”
She emphasized the importance of ensuring that “donations lacking a permissible or identifiable source must be returned.” Her remarks followed an announcement on June 4 by Nigel Farage, leader of the Reform UK party, about the party’s acceptance of cryptocurrency contributions from qualified donors.
“As of now, we are the first political party in Britain to accept donations in Bitcoin and other cryptocurrencies,” Farage declared. “We are a bit behind the United States, but right now, individuals with Bitcoin can contribute to us as long as they’re eligible.”
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