Trading 212 Faces Scrutiny Over Unauthorized Crypto ETN Access in the UK

Trading 212, one of Europe’s largest online investment platforms, allowed UK retail customers to trade cryptocurrency-linked exchange-traded notes without holding the required regulatory permission, according to a report by the Financial Times. The issue comes shortly after crypto ETNs returned to the UK retail market following a major policy shift by the Financial Conduct Authority.

Crypto ETNs were reintroduced in October 2025 after the FCA lifted a ban that had been in place since 2021. These products, which track the price of digital assets such as Bitcoin, are structured as debentures and require specific authorization before they can be offered to everyday investors. Despite this requirement, Trading 212 reportedly made crypto ETNs available to retail clients without having the necessary approval in place.

Regulatory Approval Came After FCA Intervention

According to the Financial Times, Trading 212 only applied for the additional regulatory permission last week, after being contacted by FCA supervisors. The firm’s entry on the regulator’s financial services register showed that authorization to sell debentures was granted by Monday, effectively resolving the regulatory gap after the products had already been offered.

Earlier this month, Trading 212 said in a now-removed website post that it had briefly paused access to complex instruments, including crypto ETNs, in order to upgrade its internal systems. By the time the pause ended, FCA records indicated that the company had secured the required approval to continue offering the products.

FCA Emphasizes Strict Rules for Retail Crypto Products

When lifting the ban on retail crypto ETNs, the FCA stressed that these instruments are complex and carry elevated risks. The regulator said prospectuses must be reviewed and approved before launch and warned firms to ensure they hold the correct permissions before offering such products to consumers. As restricted mass market investments, crypto ETNs are subject to strict consumer protection measures, including risk disclosures, suitability checks and cooling-off periods.

Other UK platforms, including Interactive Investor, Fidelity and Freetrade, began offering crypto ETNs when the ban was lifted in October, but did so with the necessary debenture-selling approvals already in place, according to the report.

Crypto ETNs Seen as a Growth Driver for the UK Market

Despite the regulatory concerns, industry analysts see crypto ETNs as a potential boost for the UK digital asset market. In an October 2025 research report, trading platform IG estimated that the introduction of crypto ETNs could expand the UK crypto market by as much as 20%. The report found that nearly a third of UK adults would consider investing in cryptocurrencies through ETNs, citing perceived safety and regulatory oversight as the main attractions of these products.

The FCA and Trading 212 had not responded to media requests for comment at the time of publication.