UK Lifts 4-Year Crypto Ban: Retail Investors Re-enter the Market

2025-10-23 09:46:14

The UK’s Financial Conduct Authority (FCA) has lifted a four-year ban on retail investors buying crypto-linked products, marking a major shift in financial regulation. This allows consumers to invest in Bitcoin (BTC) and Ethereum (ETH) through regulated platforms without direct ownership or wallets.

Spot Crypto ETPs Flood LSE

Post-ban, firms like 21Shares, Bitwise, WisdomTree, and BlackRock rushed to launch spot Exchange-Traded Products (ETPs) on the London Stock Exchange (LSE). BlackRock led with iShares Bitcoin ETP (IB1T), custodied by Coinbase Prime in cold storage for security. These physically backed ETPs ensure transparency and minimize risks like counterparty exposure.

FCA’s David Geale stated: “The market has matured, with improved product transparency and risk awareness. We aim to balance safety and innovation.”

Implications for UK Finance

While derivatives remain banned for retail, this opens regulated crypto access, potentially drawing $10 billion in inflows. BlackRock’s Jane Sloan noted: “UK crypto investors could exceed 4 million in a year.” Analysts see London reclaiming its fintech edge post-Brexit.

2025 Outlook: Innovation and Compliance

This policy could accelerate RWA tokenization and DeFi integration, positioning the UK as Europe’s crypto hub under evolving frameworks like MiCA.

BTC1.75%

ETH1.8%

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