FCA Crypto ETN Ban Reversal a ‘Milestone Moment’ for UK, Says Zebu Live CEO

A frontrunner within the digital asset sector sees the Monetary Conduct Authority’s resolution to elevate the ban on the sale of crypto ETNs to retail traders as an necessary step in making the nation a hub for crypto innovation.

A milestone for the British crypto trade

The Monetary Conduct Authority’s (FCA) resolution to elevate the ban on the sale of crypto Trade-Traded Notes (ETNs) to retail traders has sparked optimism within the digital asset trade, as claimed by Harry Horsfall, co-founder and CEO of Zebu Reside. Though these merchandise are usually not lined by the Monetary Providers Compensation Scheme (FSCS), Horsfall nonetheless sees this transfer as a “landmark second” for the UK’s crypto future.

In step with the FCA’s announcement, HM Income and Customs (HMRC) has introduced that it has up to date its tax coverage. It stated that crypto ETNs could be eligible for inclusion in registered pension schemes from October 8, 2025. Moreover, though they may initially routinely qualify for the Shares and Shares ISAs, from 6 April 2026 they are going to be reclassified as qualifying investments inside the Modern Finance ISA (IFISA).

“The UK is an underrated pressure within the international crypto trade,” stated Horsfall. “Latest developments recommend that Britain has lastly realized its potential because the pure house for the subsequent technology of builders and traders.”

The FCA’s unique ban, imposed in 2021, was rooted in investor safety considerations, citing the volatility and complexity of crypto derivatives and ETNs. The overarching intention now could be to make sure that Britain will not be left behind within the evolving international market. Matthew Lengthy, the FCA’s director of funds and digital belongings, characterised the coverage change because the watchdog’s “newest milestone” in its work to help the event of a “sustainable, aggressive crypto sector.”

Underneath the brand new framework, retail traders can entry crypto ETNs – debt devices that monitor the value of digital belongings – supplied they’re traded on FCA-approved funding exchanges such because the London Inventory Trade and Cboe UK. Strict guidelines on monetary promotion will apply to make sure transparency and stop deceptive incentives.

The watchdog’s resolution is a part of a wider UK regulatory push to combine crypto into conventional finance. Impressed partly by US legislative efforts (such because the GENIUS Act for stablecoins), Britain can be creating its personal stablecoin rules and exploring the tokenization of conventional belongings. These efforts intention to carry digital belongings below the umbrella of the prevailing monetary system with out stifling innovation.

A broader push: integrating crypto into conventional finance

For market leaders like Horsfall, this shift in narrative – from focusing solely on the potential hurt of digital belongings to balancing investor safety with innovation – is lengthy overdue. He burdened: “The dialog has clearly shifted from hype to regulation, adoption and utility… The UK will not be going to impose an entire ban on crypto or fake it does not exist. It’s actively engaged on new guidelines and frameworks to make sure compliance with out stifling innovation.” This proactive angle from the UK authorities can be mirrored in its rising strategic involvement within the digital belongings sector.

This sentiment is echoed within the fintech and blockchain sectors, the place the FCA’s transfer is seen as a inexperienced gentle for homegrown innovation. Youthful generations, who’re already conversant in digital belongings, are anticipated to be among the many greatest beneficiaries of expanded entry to regulated crypto merchandise.

As Europe continues to refine its digital asset insurance policies below frameworks like MiCA, Britain’s newest transfer is seen as a critical contender within the race to construct a compliant, scalable and easy-to-use crypto economic system.

Steadily requested questions 💡

• What main change to crypto rules has the UK FCA not too long ago made? The Monetary Conduct Authority (FCA) has lifted the ban on the sale of crypto Trade-Traded Notes (ETNs) to UK retail traders.
• How will HMRC’s UK tax coverage for crypto ETNs change? Crypto ETNs are eligible for registered pension schemes (October 2025) and eligible investments inside the Modern Finance ISA (April 2026).
• The place can UK retail traders commerce these new crypto ETNs? Retail traders can entry crypto ETNs via FCA-approved funding exchanges such because the London Inventory Trade and Cboe UK.
• What’s Britain’s broader objective with this regulatory shift? The transfer is a part of a wider UK effort to combine crypto into conventional finance and place the nation as a aggressive, international crypto hub.