- FCA will allow retail trading of crypto ETNs from October 8, 2025, under strict regulatory conditions.
- Crypto derivatives remain banned for UK retail investors, with cETNs excluded from FSCS protection.
- Coinbase’s “Everything is fine” campaign highlights criticism of the UK’s slow regulatory pace.
The UK’s Financial Conduct Authority (FCA) will lift its ban on retail access to cryptoasset-backed exchange-traded notes (cETNs) starting October 8, 2025. This decision follows a consultation launched in June and reflects what the regulator calls a more mature market for these products.
Retail investors will be able to trade cETNs listed on FCA-recognised UK investment exchanges. However, the FCA confirmed that its ban on crypto derivatives for retail clients will remain in place. It stressed that consumers must understand the risks, noting that cETNs will not be protected under the Financial Services Compensation Scheme (FSCS).
Related: UK-listed Vaultz Capital Buys 20 More Bitcoin, Joins Institutional Race to Hold and Mine BTC
FCA Cites Market Evolution and Stronger Safeguards
The FCA introduced the initial ban in January 2021, citing volatility and insufficient investor understanding. David Geale, Executive Director of Payments and Digital Finance at the FCA, said:
“Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. We’re providing consumers with more choice, while ensuring protections are in place.”
Under the new framework, firms must follow financial promotion rules to provide clear and accurate information. They must also comply with the Consumer Duty, which sets standards for delivering fair outcomes.
Dovile Silenskyte, Director of Digital Assets Research at WisdomTree, described the decision as “important groundwork for broader retail engagement under a regulatory framework,” while highlighting that cETNs remain subject to mass-market restrictions.
Coinbase Campaign Challenges UK Financial System
The announcement comes as Coinbase intensifies its criticism of the UK’s financial framework. The exchange released a satirical video titled “Everything is fine”, using humor to underscore what it views as the outdated state of the financial system. The campaign highlights rising household financial pressures and contrasts the UK’s cautious stance with global developments in decentralized finance and stablecoins.
Coinbase CEO Brian Armstrong shared the video on X, stating:
“We weren’t allowed to run this ad on TV in the UK, but that’s fine, we can just share it online. We’re using humor to make a very important point: the current financial system simply doesn’t work for most people. It needs to be updated.”
The campaign has sparked debate over the pace of UK regulatory reform, with some critics warning it oversimplifies complex risks. The FCA has repeatedly stressed the need for caution, pointing to volatility and the importance of consumer protection.
Related: JPMorgan Teams with Coinbase; Eric Balchunas Slams 1.4% Crypto Fees
The FCA’s decision signals a shift toward integrating regulated crypto products into retail markets while maintaining strict oversight.
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