Trading 212, one of Europe’s largest retail investment platforms, has received authorization from the Financial Conduct Authority (FCA) to sell cryptocurrency-linked exchange traded notes (ETNs) to UK retail investors. Previously, the company had been offering these products without the necessary permission.
What Happened
Traders in the UK have been able to buy crypto ETNs since October 2025, when the FCA lifted a 2021 ban on such products. ETNs are debt instruments that track the value of cryptocurrencies like bitcoin, but investors do not own the underlying assets.
Trading 212 applied for authorization only after the FCA contacted them, according to a source familiar with the situation. The company’s FCA record was updated on Monday to officially allow crypto ETN sales.
How This Affects Investors
- Temporary Pause: Trading 212 briefly paused access to crypto ETNs for new customers to upgrade its systems. During that time, ETNs were still advertised, but new purchases were blocked.
- Regulatory Compliance: Now fully authorized, Trading 212 can offer these products legally. The FCA could still enforce fines or require redress if investors suffered losses during the period of unauthorized sales.
FCA Oversight and Protections
The FCA treats crypto ETNs as high-risk, complex instruments. Retail platforms must:
- Provide warnings about the product
- Ensure customers invest no more than 10% of net assets in high-risk products
- Offer a 24-hour cooling-off period
- Avoid investment incentives
Crypto ETNs are not covered by the Financial Services Compensation Scheme, but are tightly regulated as restricted mass-market instruments.
Background on Trading 212
- Founded in 2004 by Ivan Ashminov and Borislav Nedialkov
- FCA-regulated since 2014
- Known for zero-commission trading and aggressive marketing
- Launched tax-free cash ISAs in 2024, boosting its retail customer base
Market Context
- Professional investors could access crypto ETNs from early 2024
- Bitcoin and other crypto prices have fluctuated sharply, including a 20% drop since October 2025
- Government restrictions mean crypto ETNs in ISAs will only be allowed until April 2026, after which they can only be held in Innovative Finance ISAs
Investor Takeaway
Trading 212 is now fully compliant to sell crypto ETNs, giving retail investors access to cryptocurrency-linked products under FCA oversight. Investors should be aware that these are high-risk instruments, not traditional ETFs, and are not covered by the FSCS.
Watch on YouTube
