Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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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.
The initiative follows a high-level meeting between Chancellor Rachel Reeves and Treasury Secretary Scott Bessent, attended by executives from Coinbase, Circle, Ripple, Citi, Bank of America, and Barclays.
The task force will be jointly chaired by HM Treasury and U.S. Treasury officials, with participation from the FCA and the SEC.
It is expected to report back within 180 days, focusing on the interoperability of the regulatory framework, particularly in areas such as asset custody, anti-money laundering standards, and stablecoin oversight.
Additionally, the improving regulatory appetite contrasts sharply with the Bank of England’s simultaneous proposal to impose strict ownership limits of £10,000 to £20,000 for retail and £10 million for businesses on systemic stablecoins.
The proposal has drawn fierce industry criticism, with concerns that the plan risks stifling growth and putting Britain behind its global peers.
In line with this, the Bank of England Governor Andrew Bailey outlined plans to grant widely used stablecoins access to central bank accounts, while warning that the tokens could reshape Britain’s financial system.
Bailey described stablecoins as potentially separating money holding from credit provision, reducing the role of commercial banks in the economy.
The global stablecoin market has grown to $300 billion and received a major boost after Congress passed the GENIUS Act in July.
Meanwhile, the UK government faces a separate dispute with China over the custody of 61,000 Bitcoins worth $6.7 billion, seized from Chinese national Zhimin Qian, who ran a fraud scheme that defrauded 128,000 investors between 2014 and 2017.
The High Court is deciding whether the proceeds should be allocated to the UK Treasury or used to compensate Chinese victims, with hearings expected to continue into 2027.
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