Trading 212 sold unapproved crypto ETNs to UK investors before FCA clearance
Trading 212, a prominent European retail broker, initiated selling crypto exchange-traded notes (ETNs) to UK investors in October 2025 without regulatory approval. The Financial Conduct Authority (FCA) had lifted its ban on crypto ETNs for retail investors, but Trading 212 did not secure the necessary authorisation before offering them to customers. This oversight was discovered only after the FCA contacted the company directly.
The platform subsequently paused new crypto ETN sales, attributing it to system upgrades, although advertising for the products continued. Trading 212 has since obtained FCA approval, but the regulator has not confirmed if further action will be taken.
The FCA initially prohibited crypto ETNs for retail investors in 2020 due to potential harm. However, it reversed this decision in October 2025, allowing regulated firms to offer them again, provided they obtained the correct permissions. Despite holding FCA authorisation since 2014, Trading 212 did not proactively apply for crypto-specific approval. Instead, it began selling the products to UK customers immediately after the ban was lifted.
The FCA discovered the issue when its supervisors reached out to the company. Trading 212 then submitted an application and received approval, but not before it had already sold crypto ETNs to retail investors. During this period, the firm briefly stopped offering the products to new customers, citing system upgrades. However, advertising for the ETNs remained active.
ETNs differ from traditional exchange-traded funds (ETFs) as they are debt instruments tied to the value of a cryptocurrency rather than a direct stake in an asset. Trading 212 had previously launched crypto trading under its Cypriot unit in October 2024, where revenue doubled to ÂŁ42 million in 2024. Meanwhile, its UK operations remained the largest revenue driver, contributing ÂŁ150 million to the company's total earnings that year.
Trading 212 now holds FCA approval to offer crypto ETNs in the UK. The regulator has not yet indicated whether it will take enforcement action over the initial breach. The company's UK business continues to generate significant revenue, while its Cypriot arm has expanded its crypto-related operations.
