UK retail investors are right to take issue with FCA’s crypto ISAs
The post UK retail investors are right to take issue with FCA’s crypto ISAs appeared on BitcoinEthereumNews.com.
UK retail investors have raised concerns after regulators confirmed that crypto products can now sit inside ISAs. Paul Cavanagh heard the news a few months before Christmas. Five years ago, the Financial Conduct Authority took the opposite stance. In 2020, the FCA banned retail investors from buying crypto derivatives and exchange-traded notes. Officials said prices swung too much. They pointed to cybercrime. They said many people did not understand the risks. At the time, the watchdog said the ban would save consumers £53 million. “This ban reflects how seriously we view the potential harm to retail consumers in these products,” said Sheldon Mills in 2020. He added, “Significant price volatility, combined with the inherent difficulties of valuing cryptoassets reliably, places retail consumers at a high risk of suffering losses from trading crypto derivatives.” Since then, the market has changed. Adoption grew. Other regions, including the US, moved toward clearer rules. In March last year, the FCA allowed crypto ETNs to list on the London Stock Exchange, but only for institutions. There are now 17 such products on the exchange, offered by firms including 21Shares, Invesco, and Fidelity. In October, the FCA lifted the retail ban. Investors could buy bitcoin and other coins through regulated, exchange-listed products. The next day, officials confirmed these products could also sit inside ISAs and SIPPs. Matthew Long from the FCA said, “Since we restricted retail access to crypto ETNs, the market has evolved, and products have become more mainstream and better understood.” He said consumers would get more choice with protections in place. Demand grows as investors seek simpler access The FCA estimates that about 5 million people hold crypto in the UK, down from 7 million in 2024. For them, Isa access matters. Gains inside an Isa are exempt from income tax and capital…
Filed under: News - @ January 24, 2026 6:23 pm