The UK’s Financial Conduct Authority (FCA) has ended its prohibition on crypto exchange-traded products (ETPs) for individual investors, effective October 2nd.
However, due to processing delays with necessary documentation, British consumers will likely have to wait almost another week before being able to invest in products linked to Bitcoin and Ethereum.
Reports indicate that the FCA only began accepting formal applications on September 25th, just a couple of weeks before the anticipated launch. This has caused frustration among industry leaders, who feel they were not given adequate preparation time.
The FCA needs time to carefully review each company’s application and may request additional information, potentially pushing back the launch until at least October 13th.
Following regulatory approval, the London Stock Exchange (LSE) must also give the green light to the listings.
This delay is partially attributed to ongoing discussions between the FCA and the LSE regarding the possible need for a separate exchange section designed specifically for retail-focused crypto products.
This marks a turning point, providing UK retail investors with access to regulated cryptocurrency investment options for the first time since the FCA’s 2021 ban on crypto derivatives and ETPs, which was put in place due to concerns about market instability and potential fraud.
The FCA has been working to expedite its evaluation processes, decreasing approval times by approximately 66% since April.
According to reports, five firms, among them BlackRock and Standard Chartered, have received registration approvals, increasing the approval rate to 45%, a significant jump compared to less than 15% in the previous five years.
The average processing duration has been reduced from 17 months to just over five months.
However, application numbers have decreased from 46 in the year leading up to April 2023, to 26 in the year leading up to April 2025. Correspondingly, actual approvals have also declined from eight in 2022-23 to three in 2024-25.
Some market analysts believe that companies might be choosing to wait for the FCA’s complete regulatory framework, scheduled for implementation in 2026, before seeking formal authorization.
The FCA is now providing pre-application meetings with regulatory officers and is hosting collaborative sessions to clarify expectations related to the registration steps.
On September 17th, the FCA initiated a consultation to examine whether crypto businesses should be held to the same regulatory benchmarks as traditional financial organizations, creating foundational rules while considering specific exemptions for the crypto sector.
Starting in January 2026, crypto platforms will be obligated to gather comprehensive customer data on all transactions, adhering to the OECD’s global reporting structure.
The FCA is exploring whether crypto firms should be subject to similar standards as banks, regarding governance, controls against financial crime, and obligations to safeguard consumers.
While approval processes continue, the UK and the U.S. announced the formation of the Transatlantic Taskforce for Markets of the Future during a recent state visit, aiming to enhance collaboration on digital asset regulation and capital markets.