With the plan of the British Financial Conduct Regulatory Authority (FCA) to lift the ban on encrypted currency exchange transactions (ETNs), nearly $1 trillion in British savings accounts could flow into the encrypted currency market. ETNs are a debt tool that tracks the prices of basic assets and is listed and traded on exchanges in a manner similar to the more common ETFs.
In January 2021, FCA prohibited the sale, marketing and distribution to retail investors of derivatives and ETNs involving unregulated encrypted assets. This ban, which will be lifted on 8 October 2025, may give the United Kingdom an important place in the global encryption market.
“The UK has the potential to become Europe's largest encrypted market, especially after it has confirmed the applicability of encrypted currency to individual savings accounts (ISAs) and self-supporting investment pension accounts (SIPP)” stated Dan Gold, founder of Stratiphy. According to government statistics, the assets held by British residents through these accounts exceeded $930 billion by 2023.
Nevertheless, it is uncertain whether the encrypted currency ETNs can be applied to these accounts immediately. Freetrade, the financial technology platform, is awaiting final guidance from the HMRC (United Kingdom Revenue and Customs).
In addition, a survey commissioned by the IG Trading Platform to Northat showed that 30 per cent of the 2,500 British investors surveyed would consider investing in encrypted currency through ETNs. This suggests that the holding of encrypted currency may increase significantly. A November 2024 report by the FCA states that only 12 per cent of the British population owns encrypted currency.
According to Michael Healy, the Managing Director of the British Board of Directors of IG, “We expect, especially among the younger generation, a wave of the climax of encrypted money.”