- The FCA keeps the crypto derivatives ban for retail traders.
- Retail access to cETNs begins October 2025.
- Policy aims to protect retail investors from high-risk derivatives.
The UK FCA maintains its ban on retail participation in crypto derivatives trading—covering futures and options. Despite considering access to exchange-traded notes (cETNs) by October 2025, derivatives restrictions aim to protect retail investors from market risks.
The UK Financial Conduct Authority (FCA) will maintain its ban on retail trading of crypto derivatives, continuing a policy first established in January 2021, while allowing access to exchange-traded notes by October 8, 2025.
The continuation of the ban underscores the FCA’s cautious approach, aiming to safeguard retail investors from speculative risks despite market evolution. The FCA maintains crypto derivatives ban for retail clients until 2025.
The FCA’s ban on crypto derivatives for retail clients, established to protect against high-risk products, remains in force. Initiated in January 2021, the policy targets products linked to major crypto assets like BTC and ETH. David Geale from the FCA emphasized protecting consumers while offering more choices in the upcoming years.
“Since we restricted retail access to the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring in place. This should mean people get the information they need to assess whether the level of risk is right for them.” – David Geale, Executive Director of Payments and Digital Finance, FCA
Retail clients remain unable to engage in derivatives trading of assets referencing unregulated cryptocurrencies. However, plans are in place for retail access to exchange-traded notes starting October 2025, enhancing investment options through controlled means.
The decision prolongs the existing restrictions impacting retail investors in the UK. Industries reliant on retail trading of crypto derivatives will continue to feel this impact. Experts predict a sustained cooling off in derivative markets for retail investors due to the persistent ban.
Potential outcomes of the FCA’s decision include limited retail engagement with speculative crypto derivatives. Controlled introduction of cETNs may moderate investment approaches, offering safer and more stable choices for long-term planning. Further regulatory changes might hinge on market stability over time.
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