Trading 212 authorization issue raises questions over FCA oversight after the broker offered crypto ETNs without approval.
Trading 212 authorization issue raises questions over FCA oversight after the broker offered crypto ETNs without approval.
Trading 212 authorization issue raises questions over FCA oversight after the broker offered crypto ETNs without approval.The firm, a fast-growing player in Europe’s retail brokerage market, offered cryptocurrency-linked investment products to UK customers without obtaining the required authorisation from the Financial Conduct Authority (FCA), which mandates separate approval for selling such “high-risk investment products.”
A report by the Financial Times revealed that the retail trading platform enabled users in the UK to buy crypto exchange-traded notes (ETNs) starting in October 2025, shortly after the UK regulator lifted its blanket ban on these products that had been in place since 2021.
Crypto ETNs mirror the value of the underlying digital asset. However, unlike exchange-traded funds (ETFs), they do not provide investors with ownership in a fund; instead, investors hold a debt instrument tied to the asset’s price.
The report added that Trading 212 only submitted its application for FCA approval to offer the crypto products last week, following engagement from regulatory authorities.
The FCA has authorised Trading 212 since 2014 to offer services such as forex trading and CFDs, but it has not approved the broker to provide crypto-related products.
According to the Financial Times, a now-removed notice on Trading 212’s website stated a few weeks ago that the broker had “briefly paused” access to complex instruments, including crypto ETNs, for new clients to enhance its “internal systems and onboarding flows.”
Although crypto ETNs continued to be promoted on the platform, customers attempting to place orders were shown a message saying that “we’re making improvements… we expect to be back online soon — thank you for your patience!”
Trading 212 introduced crypto trading through its Cyprus-based unit last October. The company set up a standalone crypto entity in Cyprus in 2024 and secured a crypto asset service provider (CASP) licence from the local regulator.
At the group level, Trading 212 reported a net profit of £43.7 million for 2024, generated from £194.1 million in revenue. The UK remained the company’s largest market, contributing £150 million, while its Cypriot operations delivered £42.2 million after doubling year-on-year. The recently acquired German broker FXFlat added more than £1 million to revenues.
Within the UK market, Trading 212 has also been shifting its focus away from CFDs in favour of stockbroking services.
Despite the alleged regulatory breach, it is still uncertain whether the FCA will pursue enforcement action against the brokerage.
For more broker reviews, visit: Broker Reviews.
Hey! Are you tired of missing out on our updates?
Subscribe to our news now and stay in the loop!
Fx Brokers Ratings assists you in identifying the ideal broker based on your specific needs by conducting in-depth evaluations of their services.
Copyright © 2025 Fx Brokers Ratings. All Rights Reserved.
