UK FCA Eases Access to Bitcoin, but Multiple Barriers Remain

ChainCatcher report, according to Forbes, although the UK Financial Conduct Authority (FCA) lifted the retail ban on cryptocurrency exchange-traded notes in October 2025, actual access remains subject to multiple restrictions. Bitcoin ETNs are classified as “restricted mass-market investments,” requiring investors to undergo risk warnings, suitability assessments, and cooling-off periods, and they are not covered by the Financial Services Compensation Scheme. Additionally, major banks such as HSBC and Barclays impose limits on transfers to cryptocurrency exchanges, with some banks outright blocking such transactions. The head of institutional clients at Bitwise Asset Management stated that the FCA’s principle of “same risk, same regulation” is too broad, conflating Bitcoin with speculative tokens, forcing investors toward less-regulated offshore platforms. Starting April 2026, crypto ETNs will no longer be eligible for mainstream ISA tax-free accounts and can only be held within Innovative Finance ISAs, further restricting tax-advantaged holding channels. Critics argue that regulatory measures intended to reduce risk have instead pushed investors into higher-risk environments, contradicting the original goal of consumer protection.