From Yahoo Finance: 2025-06-09 08:00:00

The Financial Conduct Authority (FCA) is considering lifting the ban on selling crypto exchange-traded products to U.K. retail investors to support growth. A consultation is underway to allow retail access to crypto ETPs listed on FCA-approved exchanges like the LSE by September. The FCA previously banned these products to protect consumers from high-risk investments.

The FCA’s decision to potentially allow retail access to crypto ETPs marks a shift in regulatory approach. These products, structured as exchange-traded notes, are often described as “physically backed” due to collateralization by underlying cryptocurrencies. The ban on crypto derivatives remains in place, but the FCA will continue to monitor market developments and assess risk.

The move to lift the ban on selling crypto ETPs has been met with support from industry experts. Laurent Kssis of CEC Capital views the change as long overdue, while Duncan Moir of 21shares sees it as a positive step for U.K. retail investors seeking regulated exposure to cryptoassets. Charlie Morris of ByteTree emphasizes the safety and security benefits of crypto ETPs for retail investors.

With Bitcoin trading at $104,000 and showing a 12% year-to-date increase, the decision to allow retail access to crypto ETPs comes at a pivotal time for investors. The U.K. regulator’s proposed change in stance aligns with global trends, as the U.S. SEC approved spot bitcoin ETFs in early 2024. This shift could provide U.K. investors with greater opportunities to engage with digital assets in a regulated environment.



Read more at Yahoo Finance: FCA Considers Lifting Ban for UK Retail