On June 6, the UK Financial Conduct Authority proposed lifting the crypto ETN ban for retail investors. The FCA crypto ETN ban has been in place since January 2021. If removed, it would allow individual investors to access crypto exchange-traded notes (ETNs) listed on FCA-recognized exchanges.
The FCA stated that this shift is part of rebalancing risk policies.
“We want to rebalance our approach to risk, and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money,”
said David Geale, executive director of payments and digital assets at the FCA.
Crypto ETNs track cryptocurrency prices and trade on exchanges. They differ from crypto ETFs because ETNs are unsecured debt notes. The FCA’s proposed update to the crypto ETN ban allows only regulated investment exchanges to offer these products to UK retail investors.
The FCA’s proposal does not automatically allow all ETNs in the UK. They must be listed on an approved exchange, and the FCA will maintain oversight.
UK Crypto Regulation Expands with New Proposals
The FCA crypto ETN ban proposal comes as the UK continues developing its digital asset regulatory framework. In May, the FCA requested public comments on new rules for stablecoins and crypto custody services.
Rachel Reeves, the UK’s new Chancellor of the Exchequer, recently announced a plan to implement a “comprehensive regulatory regime” for digital assets. This regulatory push aims to set clear rules for stablecoins, custody services, and crypto exchanges.
Law firm Clifford Chance commented on the FCA’s move. Diego Ballon Ossio, a partner at the firm, said the update to the FCA crypto ETN ban matches the UK’s broader strategy.
“This move is fully aligned with the UK’s ambition to position itself as a sophisticated jurisdiction in the crypto space,”
Ossio said.
According to recent reports, the UK has recorded the fastest growth in crypto ownership in 2025, surpassing the United States, France, and Singapore. The proposed changes to the FCA crypto ETN ban come as more individuals in the UK engage with crypto assets.
Crypto Donations Draw Political Attention in the UK
The FCA crypto ETN ban proposal comes during growing political discussions about cryptocurrency donations. On June 5, during a UK House of Commons debate, Cabinet Office Minister Pat McFadden said new rules must reflect modern finance to ensure election transparency.
Liberal Democrat MP Sarah Olney raised concerns about political crypto donations. She said,
“Members will have noticed that some political parties have begun accepting cryptocurrency donations—far be it from me to suggest that this might be an attempt to dodge the transparency requirements for donations.”
Olney also emphasized that donations from unidentifiable sources must be returned. Her remarks followed a June 4 announcement by Nigel Farage, leader of Reform UK, who said his party now accepts Bitcoin and other crypto donations.
“We’re way behind you in America, but as of now, people with Bitcoin can give us money provided they’re eligible,”
said Farage. Reform UK is the first British political party to accept crypto donations. However, only verified eligible donors can contribute.
While the FCA crypto ETN ban proposal focuses on investment products, these political developments highlight rising concerns around the use of digital assets in public finance. No direct FCA response has been issued about crypto donations so far.
