Behind the UK FCA's easing of Bitcoin access, multiple barriers still remain

MarsBitNews · 2026-03-26T06:32:30+00:00

The UK's Financial Conduct Authority (FCA) lifted the retail ban on trading notes on crypto exchanges in 2025, but investment access remains restricted, and major banks have imposed limits on related transactions. Critics argue that regulatory measures may push investors into higher-risk environments.

MarsBitNews

2026-03-26 06:32:30

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According to Forbes, the UK Financial Conduct Authority (FCA) lifted the retail ban on crypto exchange-traded notes (ETNs) in October 2025, but access remains heavily restricted. Bitcoin ETNs are classified as “restricted mass market investments,” requiring investors to go through risk warnings, suitability tests, and cooling-off periods, without protection from financial services compensation schemes. Additionally, major banks like HSBC and Barclays have imposed limits on transfers to crypto exchanges, with some even directly blocking related transactions. Bitwise Asset Management’s European financial institution head stated that the FCA’s “same risk, same regulation” principle is too broad, conflating Bitcoin with speculative tokens, which forces investors to turn to offshore platforms with weaker regulation. Starting April 2026, crypto ETNs cannot be included in mainstream ISA tax-free accounts and can only be held in innovative finance ISAs, further restricting tax-advantaged holding channels. Critics argue that measures intended to reduce risk are instead pushing investors into higher-risk environments, contradicting the original goal of consumer protection.

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