UK crypto ban lifted but retail investors still can’t buy as FCA prospectus delays push launches to October 13.
The UK Financial Conduct Authority lifted its ban on crypto exchange-traded products for retail investors, effective October 2.
However, delays in prospectus approvals mean UK consumers will face nearly a week longer before they can purchase Bitcoin and Ethereum-linked products.
According to the FT, the regulator only began accepting prospectuses on September 25, just two weeks before the expected launch date, frustrating industry executives who blame inadequate preparation time.
The FCA will take days to review each company’s prospectus and may seek further comments, potentially delaying launches until at least October 13.
After regulatory approval, the London Stock Exchange must also approve listings.
The delay stems from discussions between the regulator and the LSE about whether another exchange segment is needed for retail-focused products.
This marks the first time UK retail investors can access regulated crypto products since the FCA implemented its 2021 ban on crypto derivatives and ETPs, citing concerns about volatility and fraud.
FCA Accelerates Approvals as Application Volume Drops 43%
The FCA has accelerated its review process, cutting approval times by two-thirds since April.
According to a Cryptonews report, five firms, including BlackRock and Standard Chartered, received registrations, lifting approval rates to 45% compared with less than 15% over the previous five years.
The average processing time decreased from 17 months to just over five months.
However, applications dropped from 46 in the year to April 2023 to 26 in the year to April 2025, with actual approvals declining from eight in 2022-23 to three in 2024-25.
Industry observers suggest that companies may be waiting for the FCA’s full regulatory framework, which is set to launch in 2026, before pursuing approval.
The regulator now offers pre-approval meetings with case officers and hosts roundtables to clarify expectations around registration processes.
On September 17, the FCA opened a consultation on applying the same regulatory standards to crypto firms as to traditional financial institutions, establishing baseline rules while weighing sector-specific carve-outs.
From January 2026, crypto platforms will be required to collect detailed customer information on every trade, aligning with the OECD’s global reporting framework.
The FCA is consulting on whether crypto firms should face identical standards to banks, including governance, financial crime controls, and consumer protection duties.
UK-U.S. Task Force Targets Unified Digital Asset Framework
While waiting for approvals, the UK and U.S. announced the creation of the Transatlantic Taskforce for Markets of the Future during President Donald Trump’s September state visit, seeking to strengthen cooperation on digital asset regulation and capital markets.
