Multiple Barriers Still Exist Despite UK FCA Loosening Entry Requirements for Bitcoin

ChainCatcher reports, according to Forbes, that although the UK Financial Conduct Authority (FCA) will lift the retail ban on crypto Exchange Traded Notes (ETNs) in October 2025, actual access remains subject to multiple restrictions.

Bitcoin ETNs are classified as “restricted mass market investments”, meaning investors must go through risk warnings, suitability tests, and a cooling-off period, and are not covered by the Financial Services Compensation Scheme. In addition, major banks such as HSBC and Barclays have imposed limits on transfers to crypto exchanges, with some banks even directly blocking related transactions.

The Head of European Financial Institutions at Bitwise Asset Management stated that the FCA’s “same risk, same regulation” principle is too broad, equating Bitcoin to speculative tokens and thereby forcing investors toward less regulated offshore platforms.

From April 2026, crypto ETNs will not be eligible for mainstream ISA tax-free accounts and can only be held in Innovative Finance ISAs, further restricting tax-advantaged holding channels. Critics argue that these regulatory measures, intended to reduce risks, actually push investors toward higher-risk environments, which is counter to the original consumer protection goal.