FCA May Lift Crypto Ban: What It Means for UK Retail Investors in 2025

 As of August 3, 2025, the FCA's retail restriction on cryptocurrency Exchange-Traded Notes (ETNs) may be lifted, making it the most popular cryptocurrency topic in the UK. In the UK's changing regulatory environment for digital assets, this change represents a major turning point.

What’s Behind the Trend?
1. FCA ETN Consultation

The 2021 prohibition that prevented individual investors from purchasing cryptocurrency exchange-traded funds (ETNs), which follow the performance of coins like Bitcoin or Ethereum without requiring direct ownership, is currently being considered by the Financial Conduct Authority to be lifted. If authorized, these might be made available through FCA-approved exchanges while adhering to stringent financial marketing regulations.

2. Rising UK Crypto Ownership

In a single year, cryptocurrency ownership in the UK increased from 18% to 24%, the fastest growth rate among the countries examined, according to Gemini's May 2025 report.

3. Corporate Bitcoin Moves

Recent acquisitions or intentions to acquire Bitcoin by London-listed firms like Bluebird Mining Ventures and Tao Alpha have stoked investor excitement and established the UK as a corporate crypto adopter.

4. Consumer Protection Measures

Simultaneously, the FCA is suggesting that credit cards and loaned money be prohibited from being used to purchase cryptocurrency in order to reduce risky consumer behavior that has increased significantly lately.

5. Calls for Regulatory Action

Industry executives urge lawmakers to find the ideal mix between innovation and safety, warning that lax regulation is driving companies like Binance and Bybit to other locations like Abu Dhabi.