UK Crypto Ban Lifted but Retail Buyers Must Wait As FCA Delays Push Launch to October 13

FCA lifted its retail crypto ban on October 2, but approvals delay trading until at least October 13.

The regulator sped up review times yet faces fewer applications ahead of the 2026 framework launch.

The UK and the U.S. formed a joint task force on digital assets as the Bank of England plans strict stablecoin limits.

The UK Financial Conduct Authority lifted its restriction on crypto exchange-traded products for retail investors on October 2. However, British investors are still unable to buy Bitcoin and Ethereum-linked instruments because of pending prospectus reviews. The regulator began accepting company submissions only on September 25, leaving a limited time before the planned launch. Industry officials reported that the FCA’s late start caused logistical challenges, pushing the first retail trading date to around October 13.

A report by the Financial Times reveals that the FCA must review and approve each firm’s prospectus before the London Stock Exchange can complete the listings. Discussions between the regulator and the exchange also delayed progress as both sides debated whether to create a separate trading segment for retail crypto products. The approval process represents the first major reopening of regulated digital asset access since the FCA’s 2021 ban on crypto derivatives and ETPs, originally introduced to address volatility and fraud risks.

FCA Speeds Up Reviews as Registration Numbers Decline

The regulator has accelerated its review cycle, cutting average processing times by two-thirds since April. Market data showed that five firms, including BlackRock and Standard Chartered, secured approvals, raising the approval rate to 45% from below 15% in previous years. The average review period dropped from 17 months to just over five months.

Despite the faster reviews, total applications have fallen sharply. Submissions dropped from 46 in the year to April 2023 to only 26 in the year to April 2025. Actual approvals decreased from eight to three over the same period. Companies appear to be waiting for the FCA’s complete regulatory framework expected in 2026. To improve clarity, the agency now offers pre-approval meetings and roundtables to explain registration procedures.

In September, the FCA opened a consultation on applying the same rules to crypto firms as traditional finance institutions. The consultation focuses on governance, consumer protection, and financial crime prevention. From January 2026, platforms will need to collect full customer data on every trade under the OECD’s new global reporting framework.

Transatlantic Task Force and Stablecoin Rules Create Mixed Outlook

During President Donald Trump’s state visit, the UK and U.S. launched a Transatlantic Taskforce for Markets of the Future. The group, co-chaired by both Treasuries with FCA and SEC participation, will present its findings within 180 days. It will study regulatory interoperability, custody requirements, and stablecoin oversight.

Meanwhile, the Bank of England proposed ownership caps of £10,000–£20,000 for retail users and £10 million for companies. Governor Andrew Bailey said stablecoins could change how banks operate and separate credit from money holding. The government is also handling a legal dispute over 61,000 seized Bitcoins tied to a Chinese fraud case, with hearings continuing into 2027.