The UK’s Financial Conduct Authority (FCA) has lifted its ban on selling crypto Exchange-Traded Notes (ETNs) to retail investors — a move described as a “milestone moment” by Harry Horsfall, CEO of Zebu Live.

The FCA’s 2021 ban was based on concerns about volatility and investor risk. Its reversal signals a new phase of regulated crypto adoption, aiming to position the UK as a global digital asset hub.

Under the new rules, retail investors can access crypto ETNs on FCA-approved exchanges, including the London Stock Exchange and Cboe UK. These products track crypto prices but are not protected by the Financial Services Compensation Scheme (FSCS).

To complement the decision, HMRC announced tax updates: crypto ETNs will qualify for pension schemes from October 2025, and for Innovative Finance ISAs from April 2026.

“The UK has finally recognized its potential as a natural home for the next generation of crypto builders and investors,” Horsfall said.

Matthew Long, the FCA’s Director of Payments and Digital Assets, called the move another step toward a “sustainable and competitive crypto sector.”

The decision aligns with broader UK efforts to integrate crypto into traditional finance, mirroring U.S. regulatory initiatives and Europe’s MiCA framework. For many, it marks the shift from hype to regulation, adoption, and innovation—and reaffirms the UK’s growing ambition to become a leader in digital finance.