UK to allow retail crypto ETNs on regulated platforms from Oct 8

The U.K. regulator will lift its four year ban on retail sales of crypto exchangetraded notes starting October 8, allowing individual investors to buy ETNs that track Bitcoin and Ether on FCA recognized exchanges such as the London Stock Exchange. The move ends a prohibition first imposed in 2021 and restores a regulated route for retail exposure to major cryptocurrencies without requiring direct ownership of the underlying coins.

Under the new rules, crypto ETNs must satisfy strict listing, disclosure and distribution requirements and be offered only on exchanges approved under U.K. rules. The products are structured as unsecured debt securities that mirror the price performance of specified digital assets. The Financial Conduct Authority said the market has matured and that the change aims to expand consumer choice while keeping safeguards in place. The FCA will continue to bar crypto derivatives, including futures and options, for retail customers on the grounds that those instruments remain complex and high risk.

Tax authorities have issued parallel guidance affecting how investors can hold the products. HM Revenue and Customs said crypto ETNs may be held within registered...