UK Crypto Ban Lifted, But Retail Investors Still Can’t Buy – What’s the Holdup?
The UK Financial Conduct Authority lifted its ban on crypto exchange-traded merchandise for retail buyers, efficient October 2.
However, delays in prospectus approvals imply UK customers will face almost per week longer earlier than they will buy Bitcoin and Ethereum-linked merchandise.
According to the FT, the regulator solely started accepting prospectuses on September 25, simply two weeks earlier than the anticipated launch date, irritating business executives who blame insufficient preparation time.
The FCA will take days to evaluate every firm’s prospectus and will search additional feedback, probably delaying launches till not less than October 13.
After regulatory approval, the London Stock Exchange should additionally approve listings.
The delay stems from discussions between the regulator and the LSE about whether or not one other alternate section is required for retail-focused merchandise.
This marks the first time UK retail buyers can entry regulated crypto merchandise since the FCA implemented its 2021 ban on crypto derivatives and ETPs, citing issues about volatility and fraud.
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FCA Accelerates Approvals as Application Volume Drops 43%
The FCA has accelerated its evaluate course of, slicing approval occasions by two-thirds since April.
According to a Cryptonews report, 5 companies, together with BlackRock and Standard Chartered, acquired registrations, lifting approval charges to 45% in contrast with lower than 15% over the earlier 5 years.
The common processing time decreased from 17 months to simply over 5 months.
However, purposes dropped from 46 in the 12 months to April 2023 to 26 in the 12 months to April 2025, with precise approvals declining from eight in 2022-23 to a few in 2024-25.
Industry observers recommend that firms could also be ready for the FCA’s full regulatory framework, which is about to launch in 2026, earlier than pursuing approval.
UK’s Financial Conduct Authority is dashing up crypto approvals after years of criticism, clearing 5 companies since April. #UK #CryptoMarket https://t.co/BrMK9UoQNb
— Cryptonews.com (@cryptonews) September 22, 2025
The regulator now provides pre-approval conferences with case officers and hosts roundtables to make clear expectations round registration processes.
On September 17, the FCA opened a consultation on making use of the identical regulatory requirements to crypto companies as to conventional monetary establishments, establishing baseline guidelines whereas weighing sector-specific carve-outs.
From January 2026, crypto platforms will probably be required to gather detailed buyer data on each commerce, aligning with the OECD’s international reporting framework.
The FCA is consulting on whether or not crypto companies ought to face similar requirements to banks, together with governance, monetary crime controls, and client safety duties.
UK-U.S. Task Force Targets Unified Digital Asset Framework
While ready for approvals, the UK and U.S. introduced the creation of the Transatlantic Taskforce for Markets of the Future throughout President Donald Trump’s September state go to, searching for to strengthen cooperation on digital asset regulation and capital markets.
The initiative follows a high-level assembly between Chancellor Rachel Reeves and Treasury Secretary Scott Bessent, attended by executives from Coinbase, Circle, Ripple, Citi, Bank of America, and Barclays.
The process pressure will probably be collectively chaired by HM Treasury and U.S. Treasury officers, with participation from the FCA and the SEC.
It is anticipated to report again inside 180 days, specializing in the interoperability of the regulatory framework, notably in areas similar to asset custody, anti-money laundering requirements, and stablecoin oversight.
Additionally, the bettering regulatory urge for food contrasts sharply with the Bank of England’s simultaneous proposal to impose strict ownership limits of £10,000 to £20,000 for retail and £10 million for companies on systemic stablecoins.
The proposal has drawn fierce business criticism, with issues that the plan dangers stifling progress and placing Britain behind its international friends.
— Cryptonews.com (@cryptonews) October 1, 2025
In line with this, the Bank of England Governor Andrew Bailey outlined plans to grant extensively used stablecoins entry to central financial institution accounts, whereas warning that the tokens may reshape Britain’s monetary system.
Bailey described stablecoins as probably separating cash holding from credit score provision, decreasing the position of business banks in the financial system.
The international stablecoin market has grown to $300 billion and acquired a significant increase after Congress handed the GENIUS Act in July.
Meanwhile, the UK government faces a separate dispute with China over the custody of 61,000 Bitcoins value $6.7 billion, seized from Chinese nationwide Zhimin Qian, who ran a fraud scheme that defrauded 128,000 buyers between 2014 and 2017.
The High Court is deciding whether or not the proceeds must be allotted to the UK Treasury or used to compensate Chinese victims, with hearings anticipated to proceed into 2027.
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