UK Regulator's Records Show Trading 212 Provided Crypto ETN Access Before Obtaining Required Authorization
Records from the financial regulator reveal that Trading 212 made crypto-linked exchange-traded notes available to everyday UK investors prior to obtaining necessary FCA authorization, the Financial Times reports.
According to the Financial Times, Trading 212, which ranks among Europe's most prominent online investment platforms, permitted retail investors in the United Kingdom to access and trade exchange-traded notes linked to cryptocurrencies despite lacking the necessary authorization from the nation's financial regulatory body.
The return of crypto ETNs to the UK retail marketplace occurred in October 2025 following the Financial Conduct Authority's (FCA) decision to lift a prohibition that had been in place since 2021. These financial products, designed to track the value of digital currencies like Bitcoin (BTC), are constructed as debentures and necessitate specific regulatory clearance before they can be marketed to retail investors.
Nevertheless, until Monday, Trading 212 made crypto ETNs available to its retail customer base without obtaining the requisite authorization, the Financial Times revealed, referencing the firm's listing on the FCA's financial services register. According to a source with knowledge of the situation who spoke to the FT, the platform submitted its application for the additional permission only last week, following inquiries from the regulator's supervisory team.
A website announcement from Trading 212, which has subsequently been taken down, stated earlier in the month that the company had "briefly paused" retail access to complex financial instruments, crypto ETNs included, for the purpose of upgrading its internal technological systems. The FCA register displayed by Monday that Trading 212 had successfully obtained permission to sell debentures, according to the FT.
FCA sets conditions for retail access to crypto ETNs
Following the removal of its prohibition on retail investor access to crypto ETNs, the FCA emphasized that prospectuses require review and approval prior to product launch. "Crypto ETNs are complex products, and firms should ensure they have the correct permissions to offer them to consumers," the regulator said at the time.
Categorized as restricted mass market investments, crypto ETNs face stringent promotion and consumer protection regulations, which encompass risk warnings, cooling-off periods and suitability checks, according to the FCA.
In the meantime, competitor platforms to Trading 212, such as Interactive Investor, Fidelity and Freetrade, have been providing crypto ETNs since October, though these firms possessed the required authorizations to sell debentures at the time the prohibition was removed, the FT reported.
Cointelegraph contacted both the FCA and Trading 212 requesting comment, but had not received a response by publication.
Crypto ETNs to boost UK crypto market by 20%
Research published in October 2025 by trading platform IG suggested that the introduction of crypto ETNs could result in the UK cryptocurrency market growing by up to 20%.
This projection was derived from the platform's proprietary research, which discovered that "30% of UK adults would consider investing in crypto via ETNs," with the primary attraction being the "perceived safety and regulatory oversight" these products provide.
"This represents a significant potential uplift from current levels of crypto ownership — 12%, according to the FCA's latest study, and 25% according to IG's new study."