IG Group Halts Crypto Trading for UK Retail Investors Following Regulatory Shift

IG Group is halting all cryptocurrency trading for its UK retail customers, a direct response to the increasingly stringent regulatory environment shaped by the Financial Conduct Authority (FCA).

Starting from mid-May 2025, the door has effectively closed for new retail crypto trades on IG’s UK platform. While traders can hold onto their existing positions, they won’t be able to open new ones or add to what they already have.

Why Is IG Group Taking This Step?

As per a statement by IG Group, the change is motivated by the company’s dedication to “full compliance with regulatory obligations” and to remaining up to date with the FCA’s current expectations. 

Even though the regulator hasn’t issued a new crypto ban, it has tightened up more controls over how these types of products are marketed and traded—particularly to retail, amateur investors. 

This is complemented by the prohibition against promotional offers which induce speculation, including such things as “refer-a-friend” bonuses, and mandatory cautions about the high risks which crypto trading poses. The regulator has often expressed concerns that retail investors are not fully aware of such risks and can incur serious losses.

A Broader Trend in the UK Market

This is not the first time the FCA has opposed retail access to crypto. In 2021, the regulator prevented the sale to retail investors of crypto exchange-traded notes (ETNs) and crypto derivatives owing to their high volatility and absence of transparency.

IG Group’s latest action seems to be the direct continuation of this tendency, indicating that major finance organisations aren’t leaving anything to chance when it comes to compliance. The move is also in line with other regulated companies that have exited the retail crypto market or have curtailed their services.

What About Institutional Clients?

It is worth pointing out that IG Group’s suspension is only applicable to retail clients in the UK. Institutional investors and overseas clients continue to be able to trade crypto through the firm’s international branches. That indicates a subtle strategy—instead of leaving the crypto market altogether, IG is conforming to regional regulation. 

Meanwhile, for UK retail investors, the field of regulated options is narrowing. Big exchanges like Binance and Coinbase are still operating but find themselves under an ever-brighter regulatory spotlight. IG’s exit could well be a taste of things to come for UK brokers.

What Does This Mean for UK Traders?

For everyday UK traders, this development significantly narrows the playing field. Those still eager to participate in the crypto market may explore decentralised platforms or offshore services. However, these come with additional layers of complexity and risk, not to mention potential legal grey areas.

Still, the global crypto landscape remains varied. As the UK tightens its grip, regions like the European Union are attempting to strike a balance through comprehensive frameworks, such as MiCA (Markets in Crypto-Assets), which aim to offer clarity while encouraging innovation.

Final Thoughts

IG Group’s move shows the increasing sophistication involved in operating in multiple regulatory environments, especially for companies that have interests in more than one jurisdiction. With tightening rules, businesses must reassess how and to whom they provide crypto services.

For now, UK retail investors will have to look elsewhere for their crypto trading needs as another major door quietly closes.