UK Crypto Ban Lifted, But Retail Investors Still Can’t Buy – What’s the Holdup?

Core Insights - The UK Financial Conduct Authority (FCA) has lifted its ban on crypto exchange-traded products (ETPs) for retail investors, effective October 2, but delays in prospectus approvals will postpone access to Bitcoin and Ethereum-linked products for nearly a week [1][3] - The FCA's review process has accelerated, with approval times reduced by two-thirds since April, although the number of applications has dropped significantly [4][5] Regulatory Developments - The FCA began accepting prospectuses on September 25, just two weeks before the expected launch date, leading to frustration among industry executives due to inadequate preparation time [1] - The review of each company's prospectus may take several days, and further comments could delay launches until at least October 13 [2] - The FCA is consulting on applying the same regulatory standards to crypto firms as to traditional financial institutions, with a full regulatory framework expected to launch in 2026 [6][7] Market Dynamics - This marks the first time UK retail investors can access regulated crypto products since the FCA's 2021 ban on crypto derivatives and ETPs [3] - The number of applications dropped from 46 in the year to April 2023 to 26 in the year to April 2025, indicating a potential wait for the FCA's full regulatory framework [5] - The FCA has introduced pre-approval meetings and roundtables to clarify expectations around registration processes [5] International Cooperation - The UK and U.S. have announced the creation of the Transatlantic Taskforce for Markets of the Future to strengthen cooperation on digital asset regulation and capital markets [8]