TL;DR
- Regulatory Breach: Trading 212 allowed UK retail clients to trade crypto ETNs without the required FCA permission, according to the Financial Times, prompting questions about compliance and oversight.
- FCA Framework: Crypto ETNs returned in October 2025 with strict rules, including prospectus reviews, risk warnings, and suitability checks, reflecting the regulator’s focus on consumer protection.
- Market Outlook: IG research suggested the UK crypto market could expand by 20%, with 30% of adults open to ETN investing due to perceived safety.
Trading 212 is facing scrutiny after the Financial Times reported that the platform allowed UK retail investors to trade crypto ETNs without the required authorization. The revelation comes at a time when the FCA has been reinforcing strict expectations around permissions, prospectus approvals, and consumer protection rules for firms offering crypto-linked products.
FCA Requirements and the Return of Crypto ETNs
Crypto ETNs reentered the UK retail market in October 2025 when the FCA reversed its 2021 ban. The regulator emphasized that companies must secure the correct permissions before offering these debenture structured products, which track digital assets such as Bitcoin. The FCA also highlighted that prospectuses must be reviewed and approved before launch, noting that crypto ETNs are complex instruments that demand careful oversight.
Trading 212’s Unauthorized Offering
According to the Financial Times, Trading 212 offered crypto ETNs to retail clients without the necessary authorization until Monday. The FT cited the company’s entry on the FCA register, which showed the missing permission. A person familiar with the matter told the FT that Trading 212 applied for the additional approval only after being contacted by FCA supervisors. The platform had previously posted, then removed, a notice stating that it had briefly paused access to complex instruments to upgrade its internal systems.
Regulatory Classification and Consumer Protections
The FCA classifies crypto ETNs as restricted mass market investments. This designation subjects them to strict promotion and consumer protection rules, including risk warnings, cooling-off periods, and suitability checks. These measures are designed to ensure that retail investors understand the risks associated with products tied to volatile digital assets. By Monday, the FCA register showed that Trading 212 had finally been granted permission to sell debentures.
Market Context and Growing Retail Interest
Rival platforms such as Interactive Investor, Fidelity, and Freetrade have offered crypto ETNs since October, having secured the required approvals when the ban was lifted. A research report from IG in October 2025 suggested the UK crypto market could grow by up to 20% following the launch of crypto ETNs. IG found that 30% of UK adults would consider investing in crypto through ETNs, citing perceived safety and regulatory oversight as key factors. This potential growth contrasts with current crypto ownership levels of 12% per the FCA and 25% per IG.
