Trading 212 Offered Unauthorized Products Since October 2025
Trading 212, one of Europe’s largest online investment platforms, sold cryptocurrency-linked exchange-traded notes (ETNs) to its UK retail customers without holding the required regulatory permission. The unauthorized activity began in October 2025, when the Financial Conduct Authority (FCA) lifted a 2021 ban on the products, and continued until January 26, 2026. The firm reportedly applied for the necessary authorization only last week, prompted by contact from FCA supervisors.
Crypto ETNs, which track the price of digital assets like Bitcoin, are structured as debentures. The FCA classifies them as “restricted mass market investments,” requiring firms to secure specific approval and adhere to strict consumer protection rules, including suitability checks and risk warnings. While Trading 212 operated without this permission, rival platforms such as Interactive Investor, Fidelity, and Freetrade had the correct approvals in place when the market reopened in October.
FCA Granted Belated Approval on January 26
Following regulatory intervention, Trading 212’s status on the FCA's financial services register was updated on Monday, January 26, 2026, officially granting it permission to sell debentures. Prior to the update, the company had posted a notice on its website, which has since been removed, stating it had “briefly paused” access to complex instruments like crypto ETNs to upgrade internal systems. This move suggests the platform was reacting to the regulatory scrutiny.
This enforcement action contrasts with the FCA's recent public statements. On the same day Trading 212's approval was granted, an FCA official noted that its authorization process “must not be a barrier to growth,” signaling a desire to welcome new firms. However, the action against Trading 212 underscores that this pro-growth stance does not supersede strict compliance with established rules.
Breach Clouds Projected 20% Crypto Market Expansion
The regulatory failure at Trading 212 threatens to undermine investor confidence in a market segment poised for significant growth. A research report from trading platform IG in October 2025 projected that the availability of crypto ETNs could expand the UK crypto market by as much as 20%. The report found that 30% of UK adults would consider investing in these products specifically because of the “perceived safety and regulatory oversight” they offer.
This incident directly contradicts the core appeal for many retail investors. The FCA’s decision to allow crypto ETNs was contingent on firms ensuring robust consumer protection. Trading 212's months-long lapse in compliance demonstrates the significant risks that remain as traditional finance platforms integrate complex and volatile digital asset products.
