Trading 212 allowed UK retail investors to trade cryptocurrency-linked exchange-traded notes without holding the required regulatory permissions, according to a report by the Financial Times.
The issue emerged despite clear guidance from the Financial Conduct Authority that firms must secure specific approvals before offering crypto ETNs to everyday investors.
Crypto ETNs returned to the UK retail market in October 2025 after the FCA lifted a ban that had been in place since 2021.
These products track the price of digital assets such as Bitcoin (CRYPTO:BTC) and are structured as debentures under UK financial rules.
As debentures, crypto ETNs require firms to obtain explicit authorisation before being sold to retail customers.
The Financial Times reported that Trading 212 offered these products without the necessary permission until Monday.
The report cited Trading 212’s entry on the FCA’s financial services register as evidence of the missing approval.
A person familiar with the matter said the company applied for the additional permission only after being contacted by FCA supervisors.
Trading 212 reportedly submitted its application for debenture-selling authorisation last week.
Earlier this month, Trading 212 said it had “briefly paused” access to complex instruments while upgrading its internal systems, according to a now-removed website post.
The company included crypto ETNs among the products affected by the temporary pause.
By Monday, the FCA register showed Trading 212 had been granted permission to sell debentures, the report said.
The FCA has stressed that crypto ETNs are complex instruments that require careful oversight before being offered to consumers.
Crypto ETNs are complex products, and firms should ensure they have the correct permissions to offer them to consumers.
The regulator said.
The FCA classifies crypto ETNs as restricted mass market investments under its regulatory framework.
These classifications impose strict rules on financial promotions and consumer protections.
Requirements include prominent risk warnings, mandatory cooling-off periods and suitability assessments for investors.
Rival platforms such as Interactive Investor, Fidelity and Freetrade have offered crypto ETNs since October with the proper approvals in place.
These competitors held debenture-selling permissions when the FCA lifted the retail ban, according to the Financial Times.
Trading 212’s situation contrasts with the compliance steps taken by these rival platforms.
In a separate development, trading platform IG published research in October 2025 on the potential impact of crypto ETNs.
IG estimated the UK crypto market could grow by up to 20% following the launch of crypto ETNs.
The forecast was based on research showing that 30% of UK adults would consider investing in crypto through ETNs.
IG said perceived safety and regulatory oversight were the main attractions for retail investors.
This represents a significant potential uplift from current levels of crypto ownership.
IG said.
The firm compared its findings with FCA data showing crypto ownership at 12% and IG’s own study suggesting 25%.
At the time of reporting, Bitcoin price was $87,834.67.