FCA Eyes Retail Access to Crypto ETPs in Push for U.K. Market Competitiveness
Retail investors in the U.K. may soon gain access to crypto exchange-traded products (ETPs), marking a potential turning point in the nation’s evolving digital asset landscape.
The Financial Conduct Authority (FCA) is actively reviewing its long-standing ban on retail access to crypto ETPs—a restriction in place since 2021. The move comes amid growing pressure to position the U.K. as a competitive hub for digital asset innovation, in line with global trends.
A new consultation phase has been launched by the regulator, focusing on the possibility of permitting crypto ETPs on approved exchanges such as the London Stock Exchange (LSE). If the consultation progresses swiftly, retail participation could begin as early as September.
“We’re looking to recalibrate our approach to risk,” said David Geale, the FCA’s executive director for payments and digital assets. “Allowing retail investors to choose for themselves—while fully aware of the risks—reflects a more mature approach to investor autonomy.”
A Change of Heart
Back in January 2021, the FCA implemented a blanket ban on crypto derivatives and ETPs for everyday investors, citing the products’ volatility and high risk. Despite those concerns, retail investors across other European countries have continued to access regulated crypto products—creating a clear disparity in the U.K. market.
The FCA’s new consultation suggests a shift in tone, though not a total reversal. While crypto derivatives will remain off-limits to retail users, exchange-traded notes (ETNs) backed by digital assets may soon be permitted. These ETNs are often described as “physically backed,” as they are collateralized by the underlying cryptocurrencies.
Mhairi Jackson, policy manager for funds and asset management at the FCA, hinted at this shift during the recent ETF Ecosystem Unwrapped event hosted by ETF Stream, saying, “As our regulatory scope expands to include crypto assets more broadly, we are considering the right timing for retail access.”
Industry Reacts to FCA’s Evolving Stance
Industry insiders welcomed the FCA’s openness to change. Laurent Kssis, founder of crypto consultancy CEC Capital, described the move as overdue.
“The FCA has been under immense pressure to lift the ban. Retail investors in Europe already have access to these products—so the U.K. has been lagging,” Kssis said.
Duncan Moir, president of 21Shares, Europe’s largest crypto ETP issuer, echoed the sentiment, noting that regulated access is essential for mainstream adoption.
“If approved, this will give U.K. retail investors the opportunity to buy crypto products via regulated channels instead of turning to unregulated alternatives,” Moir stated.
What Comes Next?
The outcome of the FCA’s consultation will likely shape the future of retail crypto investment in the U.K. for years to come. It also signals the regulator’s intent to strike a balance between investor protection and market innovation—a challenge regulators worldwide continue to grapple with.
For now, the door remains closed on crypto derivatives for the public. But if this consultation leads to action, retail investors could gain access to a new class of regulated digital asset products just months from now.