FCA Lifts UK Retail Ban on Crypto ETNs — Bitcoin ETNs Now Permitted on FCA-Listed Exchanges

COINOTAG reports (Oct. 9), citing CoinDesk, that the UK Financial Conduct Authority (FCA) has formally lifted its retail prohibition on buying certain exchange-traded notes (ETNs) linked to crypto assets, provided those products are listed for trading on FCA-approved UK-based investment exchanges. ETNs remain debt securities tied to underlying crypto exposure and are explicitly not backed by physical assets. The FCA has not removed the retail restriction on crypto ETFs or derivatives, preserving existing limits on those product types.

The decision restores regulated market access for retail investors to qualifying crypto ETNs but does not eliminate issuer credit or liquidity risks inherent to ETNs. Market participants should review prospectuses, issuer creditworthiness and exchange listing conditions to assess compliance with the FCA’s prudential and conduct frameworks before allocation.