Update (June 6, 2025, 1:20 pm UTC): This article has been updated to add commentary by Kraken’s UK General Manager, Bivu Das.
The United Kingdom’s Financial Conduct Authority (FCA) has proposed lifting its ban on offering cryptocurrency exchange-traded notes (ETNs) to retail investors.
In a June 6 announcement shared with Cointelegraph, the FCA said the proposed change would allow individual consumers to access crypto ETNs, provided they are listed on an FCA-recognized investment exchange.
“We want to rebalance our approach to risk, and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money,” said David Geale, executive director of payments and digital assets at the FCA.
Diego Ballon Ossio, partner at British law firm Clifford Chance, said that the move “is fully aligned with the UK’s ambition to position itself as a sophisticated jurisdiction in the crypto space,” adding that it “will not only unlock exposure to crypto assets for retail investors but stands as signal that the UK is open to crypto.”
Kraken’s UK General Manager, Bivu Das, told Cointelegraph that “this is a major milestone for the UK’s crypto ecosystem.” He added:
“Repealing the ban on crypto ETNs reflects a welcome shift by the FCA, acknowledging that the market has matured significantly and that outdated restrictions no longer serve their intended purpose.”
Ian Taylor, board adviser to CryptoUK, the trade association for the digital assets industry in the UK, and chief operating officer of onchain auditor HT Digital, welcomed the news. He told Cointelegraph that the organization hopes that “this move will improve consumer protections.”
Related: FCA-registered BCP launches British pound stablecoin
FCA hard at work on crypto regulation
The FCA is currently working on a new iteration of its crypto regulatory framework. In late May, the regulator requested public feedback on proposed regulations for stablecoins and cryptocurrency custody.
The ongoing efforts also follow a recent revelation by UK Chancellor of the Exchequer Rachel Reeves of plans for a “comprehensive regulatory regime” aimed at making the country a leader in the crypto sector.
Recent reports also indicate the need for such measures, considering that the United Kingdom is leading the world in increasing cryptocurrency ownership among its population in 2025, outpacing economies including the United States.
Related: Zebec buys compliance firm Gatenox ahead of MiCA, FCA regulatory push
Crypto political donations alarm UK lawmakers
During a June 5 UK House of Commons debate, Cabinet Office Minister Pat McFadden said that “it is absolutely right that as finance evolves, so too must the rules we have to ensure transparency and probity in elections.” Member of Parliament Sarah Olney raised concerns over political parties accepting crypto donations:
“Members will have noticed that some political parties have begun accepting cryptocurrency donations — far be it from me to suggest that this might be an attempt to dodge the transparency requirements for donations.“
She highlighted the need to ensure “that donations that do not come from a permissible or identifiable source must be returned.” Her comments followed a June 4 announcement by Nigel Farage, leader of the Reform UK party, who recently announced that the party is accepting cryptocurrency contributions from eligible donors.
“[A]s of now, we are the first political party in Britain who can accept donations in Bitcoin and other cryptocurrencies,” said Farage. “We’re way behind you in America, but as of now, people with Bitcoin can give us money provided they’re eligible.”
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