Quick Breakdown
- Trading 212 offered crypto ETNs to UK retail investors without FCA approval, correcting the issue only after regulatory contact.
- The FCA enforces strict rules on crypto ETNs, including suitability checks and enhanced risk warnings.
- Analysts expect crypto ETNs to boost UK crypto adoption by up to 20%, driven by demand for regulated exposure.
Trading 212, one of Europe’s largest online investment platforms, allowed UK retail investors to trade cryptocurrency-linked exchange-traded notes (ETNs) without holding the required regulatory permission, according to a report by the Financial Times.
Crypto ETNs returned to the UK retail market in October 2025 after the Financial Conduct Authority (FCA) lifted a ban that had been in place since 2021. The products, which track digital assets such as Bitcoin, are legally structured as debentures and require firms to obtain specific authorization before offering them to everyday investors.
Trading 212 sold crypto-linked securities without authorisation via @FT
https://t.co/oLG6ZoMgkl— David Burton ⭐️⭐️ (@DavidBurton1971) January 27, 2026
Despite this requirement, Trading 212 made crypto ETNs available to retail customers without the necessary approval until Monday, the FT reported, citing information from the FCA’s financial services register.
Trading 212 sought approval after FCA intervention
According to the report, Trading 212 applied for the additional permission only last week, after being contacted by FCA supervisors. A person familiar with the matter told the FT that the regulator flagged the issue during routine oversight.
Earlier this month, Trading 212 said in a now-removed website post that it had “briefly paused” access to certain complex products, including crypto ETNs, citing internal system upgrades. By Monday, the FCA register showed the firm had been granted approval to sell debentures, bringing it into line with regulatory requirements.
The FCA has previously stressed that crypto ETNs are complex, high-risk instruments and that firms must secure the correct permissions before offering them to consumers.
FCA rules and market impact of crypto ETNs
After reversing the ban on retail crypto ETNs, the FCA introduced strict conditions governing their sale. These include regulator-approved prospectuses, prominent risk warnings, cooling-off periods and investor suitability checks.
Rival platforms such as Interactive Investor, Fidelity and Freetrade began offering crypto ETNs when the ban was lifted in October, having already secured the required debenture permissions, according to the FT.
The return of crypto ETNs could significantly expand the UK digital asset market. The FCA announced a comprehensive regulatory package on December 8, 2025, designed to dismantle barriers that prevent millions of UK adults from participating in retail investments.
Current crypto ownership stands at around 12%, according to the FCA, while IG’s own study places the figure closer to 25%.
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