TLDR:UK retail investors can trade crypto ETNs starting October 8, 2025, under FCA rules.FCA says crypto ETNs won’t be covered by the FSCS; investors bear full market risk.Professional investors gained access to ETNs in 2024; now retail traders join with protections.The FCA will keep banning crypto derivatives for retail clients despite lifting the ETN ban.The UK is about to change its stance on crypto. Retail investors will soon be able to trade crypto exchange-traded notes (cETNs) on approved UK exchanges. The Financial Conduct Authority (FCA) announced the shift, setting the start date for October 8, 2025. This move widens access to crypto-linked products but comes with clear warnings. The regulator says the risks remain high, and investors should be cautious.FCA Opens Retail Access to Crypto ETNsThe FCA confirmed that retail investors will get access to cETNs only through UK-recognised investment exchanges. According to the regulator, this decision reflects a maturing market where products are now better understood. David Geale, the FCA’s executive director of payments and digital finance, explained that the regulator wants consumers to have more choice while ensuring they get proper information before investing.This follows years of strict limits. Back in January 2021, the FCA banned the sale of crypto ETNs and derivatives to retail clients. In March 2024, the regulator allowed professional investors to trade cETNs on platforms such as the London Stock Exchange. Now, the FCA says it is ready to bring retail investors into the fold, with rules designed to protect them.The FCA stressed that cETNs will not be covered by the Financial Services Compensation Scheme (FSCS). If a platform fails or the market collapses, there will be no compensation. Investors will carry the full risk. Financial promotion rules will also apply, preventing firms from offering inappropriate incentives or misleading information.This change forms part of the regulator’s broader crypto roadmap. The FCA is also working on proposals for stablecoins and other aspects of the digital asset regime. Its ban on crypto derivatives for retail clients, however, will stay in place.What Happens NextThe new rules will take effect on October 8, 2025. Before then, recognized investment exchanges will prepare to launch their retail crypto ETN segments. Wu Blockchain noted on X that this step marks a key moment for the UK’s crypto market.The UK FCA will allow retail access to crypto ETNs starting October 8, 2025, if traded on FCA-approved UK exchanges. While offering more choice, cETNs won’t be covered by FSCS, and the ban on crypto derivatives remains. https://t.co/qfBF9jU1d6— Wu Blockchain (@WuBlockchain) August 1, 2025The FCA has made it clear: it will keep monitoring crypto closely. If the risks grow, it could step in again. For now, retail investors finally get their chance, but only if they understand exactly what they’re buying. The post UK’s FCA Lifts Ban on Crypto ETNs, But Warns of High Risk appeared first on Blockonomi.