UK Lifts Ban on Crypto ETNs
Government says the market has “evolved” as investors eye new tax-free opportunities
The United Kingdom has officially lifted its four-year ban on crypto exchange-traded notes (ETNs), signaling a major policy shift as regulators acknowledge the growing maturity and stability of the crypto market. The Financial Conduct Authority (FCA) announced that retail investors can now access crypto ETNs through FCA-approved UK exchanges, a move seen as a breakthrough for the country’s digital asset sector.
Crypto ETNs are financial instruments that let investors gain exposure to cryptocurrencies without directly owning them. The products operate like traditional securities, with regulated custodians safeguarding the underlying digital assets. The FCA first imposed the ban in January 2021, arguing that crypto ETNs were “ill-suited” for retail investors and posed significant risk.
“Since we restricted retail access to crypto ETNs, the market has evolved, and products have become more mainstream and better understood,” said David Geale, executive director of payments and digital finance at the FCA. “We’re providing consumers with more choice while ensuring proper protections remain in place.”
The regulator’s reversal marks a significant step in the UK’s broader effort to establish itself as a global crypto hub. The government also unveiled new tax measures allowing crypto ETNs to be included in registered pension schemes starting October 8, and in Stocks & Shares Individual Savings Accounts by April 2026 — both offering tax benefits to investors.
A report by IG Group forecasts a potential 20% growth in the UK’s crypto market following the reintroduction of ETNs, noting that 30% of UK adults are now open to investing in crypto through these regulated instruments.
While the FCA still maintains restrictions on crypto derivatives, this policy change signals a new chapter for Britain’s digital finance landscape — one that blends innovation with investor protection.
