Trading 212 Sold Crypto ETNs Without FCA Approval

Trading 212 sold crypto ETNs in the UK without FCA approval, later securing permission after regulator intervention.

Key points:

• Trading 212 offered crypto exchange-traded notes in the UK immediately after the FCA lifted its 2021 ban.
• The broker applied for and received FCA approval only after regulatory intervention.

Trading 212, a fast-growing disruptor in Europe’s retail brokerage market, sold cryptocurrency-linked exchange-traded notes (ETNs) in the United Kingdom without securing the required authorisation from the Financial Conduct Authority.

The FCA requires separate approval for firms offering “high-risk investment products,” a category that includes crypto ETNs. Trading 212 has held FCA authorisation since 2014 for products such as forex and contracts for difference (CFDs), but it did not have permission to offer crypto-linked instruments.

Trading 212 allowed customers to buy crypto ETNs from October 2025, shortly after the FCA lifted its blanket ban on the products that had been in place since 2021.

Trading 212 Sold Crypto ETNs Without FCA Approval

ETNs track the value of an underlying asset, such as a cryptocurrency, but they differ from exchange-traded funds (ETFs). ETN investors hold a debt note tied to the asset’s price rather than an ownership stake in a fund.

Trading 212 reportedly applied for FCA approval only last week after regulatory officials intervened. The broker received approval on Monday.

The company briefly paused the offering of “complex instruments,” including crypto ETNs, to new customers. A post on the platform’s website—since deleted—said the pause aimed to upgrade internal systems and onboarding flows.

While the platform continued to advertise crypto ETNs, a message appeared during the order review stage informing customers that Trading 212 was “making improvements” and would be “back online soon.” That message disappeared after the FCA approval arrived on Monday.

Trading 212 has been expanding its crypto operations outside the UK. The company created a dedicated crypto entity in Cyprus and obtained a crypto asset service provider (CASP) licence from Cypriot regulators.

The group reported a net profit of £43.7 million in 2024 on revenue of £194.1 million. Its UK business generated £150 million, while the Cyprus operation brought in £42.2 million, doubling its revenue year-on-year. Germany’s FXFlat contributed more than £1 million following its acquisition.

Despite the reported breach, it remains unclear whether the FCA will take enforcement action against Trading 212. The regulator has not publicly confirmed whether it will investigate or penalise the broker.

Trading 212 is also reportedly shifting its focus away from CFDs toward traditional stockbroking services in the UK.

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