UK May Allow Retail Investors to Trade Crypto Bonds
Date: 2025-06-09 Author: Henry Casey Categories: IN WORLD
The UK Financial Conduct Authority (FCA) is considering lifting the current ban on retail investors from trading cryptocurrency exchange-traded notes (ETNs) linked to assets such as bitcoin and ethereum. The proposal is part of a wider push to strengthen the UK’s role in digital finance.
If the rules come into force, retail investors will be able to access crypto ETNs through regulated venues, including the London Stock Exchange. The FCA stressed that similar instruments are already available in countries such as the US, Canada and Australia. This suggests that the UK risks being marginalized in the global crypto market unless it takes more action.
As Lucy Castledine, head of digital assets at the FCA, noted, the proposed measures are aimed at creating a stable and clear regulatory environment. She added that expanding access to investment products based on digital assets could increase interest from institutional players and facilitate capital inflows into the industry.
David Geale, responsible for payment systems and digital assets at the FCA, said that the regulator seeks to ensure a balance between providing investors with freedom of choice and the need to take risks into account. He noted that citizens should be able to make decisions independently, realizing the potential likelihood of a complete loss of their invested funds.
In turn, representatives of the London Stock Exchange confirmed their readiness to begin considering applications for the listing of cryptocurrency ETNs, which indicates real interest from the organized market. The consultation period on this issue will last until the end of summer 2025. Based on the results of the discussions, the FCA will make a final decision.
At the same time, the agency warned that despite the liberalization of the rules, cryptocurrency assets still remain high-risk, and investors should remain cautious. As part of its efforts to protect consumers, the FCA also plans to tighten controls over the advertising of cryptocurrency products to limit the spread of false or misleading information.
Recall that the FCA has previously issued a warning regarding Digital Assets Nest, which, according to the regulator, operates in the UK without a license.
