The UK’s Financial Conduct Authority (FCA) has officially proposed lifting its ban on crypto bond trading for retail investors. The regulator aims to re-enable access to cryptocurrency exchange-traded notes (ETNs) linked to Bitcoin and Ethereum on regulated exchanges such as the London Stock Exchange.
The proposal marks a shift from the 2021 restrictions intended to protect investors from extreme volatility. Now, the FCA is focused on enabling transparent participation in digital markets while reinforcing proper risk disclosures.
Crypto Bond Trading Framework Gains Traction in the UK
In its official statement, the FCA emphasized that ETNs are already accessible to retail investors in jurisdictions like the United States, Canada, and Australia. The regulator acknowledges that the UK has lagged behind in this area and is now taking steps to close the gap.
Lucy Castledine, FCA Director of Digital Assets, noted that the move is part of the UK’s broader strategy to establish a transparent regulatory framework for the crypto industry. “Retail investors will gain access to new instruments,” she said, adding that it could also help attract institutional capital to the sector.
FCA Balances Crypto Bond Trading Risks and Access
According to David Geale, FCA Director of Payments and Digital Assets, the proposed rules seek to balance investor protection with market freedom. “We want people to decide for themselves whether a high-risk instrument like a crypto bond fits their financial goals,” he explained.
The FCA underlines that crypto bond trading still carries significant risk, and retail investors should be prepared for the possibility of total loss. However, with proper regulation, these products may become more accessible and better understood.
London Stock Exchange Signals Readiness
The London Stock Exchange has confirmed its intent to support listings of crypto-linked ETNs once regulatory clarity is finalized. This move demonstrates clear market interest and institutional readiness for a regulated approach to crypto finance.
Consultations on the FCA’s proposal will remain open until late summer 2025, after which a final decision will be made. In parallel, the regulator will increase scrutiny on crypto advertising to combat misleading promotions and ensure risk transparency.
Conclusion: Crypto Bond Trading Set to Reenter UK Market
If the FCA finalizes its proposal, the UK could reintroduce crypto bond trading in a more structured and transparent format. This would mark a major milestone in aligning the UK’s digital finance policies with other advanced markets — and empower retail investors with regulated access to Bitcoin and Ethereum-based instruments.
