Crypto-asset regulation in the United Kingdom: financial promotions, AML registration and a developing regime

Overview for education, not legal advice. Rules change — check the official sources. Last reviewed 20 October 2026.

A step-by-step approach

The UK has regulated cryptoassets in stages rather than through one new law. It started with anti-money laundering registration, brought cryptoasset marketing into the financial promotions regime, and is now introducing a broader framework for cryptoasset activities. At each stage, the Financial Conduct Authority (FCA) has been the main supervisor, with HM Treasury responsible for the underlying legislation.

Anti-money laundering registration

Since 10 January 2020, businesses carrying on cryptoasset exchange or custodian wallet activities in the UK have had to register with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. To register, a firm must show that it can identify and verify its customers, monitor transactions and report suspicious activity, and that its managers are fit and proper.

The FCA has refused or seen withdrawn a large share of applications, which shows how demanding the process is. Registration, however, covers anti-money laundering only. It is not authorisation for wider conduct of business, and it does not bring the protections that apply to regulated financial services.

Since 1 September 2023, registered firms have also had to apply the UK travel rule, sending and checking information about the originator and beneficiary of cryptoasset transfers.

Financial promotions since October 2023

From 8 October 2023, promotions of qualifying cryptoassets to people in the UK became subject to the financial promotion regime under the Financial Services and Markets Act 2000. A cryptoasset promotion can lawfully be made to UK consumers only if it is:

• communicated by a firm authorised by the FCA;
• approved by an authorised firm that has permission to approve such promotions;
• communicated by a cryptoasset business registered with the FCA under the Money Laundering Regulations; or
• covered by another exemption.

The FCA's rules for these promotions require clear risk warnings, a 24-hour cooling-off period for consumers using a firm for the first time, a ban on incentives such as refer-a-friend bonuses, and an assessment of whether the product is appropriate for the consumer. The regime applies regardless of where the firm is based, as long as the promotion is aimed at UK consumers. The FCA publishes alerts about illegal promotions and asks platforms to remove them.

This is why many educational and media websites, including this one, avoid anything that could look like an invitation to engage in cryptoasset activity.

The wider regime

The Financial Services and Markets Act 2023 gave the government powers to bring cryptoassets more fully into financial regulation. The government's plan is to create new regulated activities — such as operating a cryptoasset trading platform, dealing in and safeguarding cryptoassets, and issuing qualifying stablecoins in the UK — together with rules on admissions and disclosures and a market abuse regime for cryptoassets.

HM Treasury has published legislation for this regime, and the FCA has been consulting on the detailed rules through a series of discussion and consultation papers. The Bank of England has consulted separately on how stablecoins that become widely used for payments could be regulated. Because commencement dates and transitional arrangements are set by legislation and FCA announcements, we do not repeat them here — check the FCA's cryptoasset pages for the current timetable.

Consumer protection and its limits

In general, cryptoassets are not covered by the Financial Services Compensation Scheme, and access to the Financial Ombudsman Service depends on whether the activity in question is regulated. The FCA has repeatedly warned that people should be prepared to lose all the money they put into cryptoassets.

Tax

HM Revenue and Customs publishes guidance on the tax treatment of cryptoassets for individuals and businesses in its Cryptoassets Manual. Tax rules are separate from FCA regulation.

Timeline at a glance

• 10 January 2020 — cryptoasset exchange providers and custodian wallet providers must be registered with the FCA for anti-money laundering purposes.
• 2023 — the Financial Services and Markets Act 2023 gives the government powers to regulate cryptoasset activities more broadly.
• 1 September 2023 — the UK travel rule applies to cryptoasset transfers.
• 8 October 2023 — promotions of qualifying cryptoassets come within the financial promotion regime.
• Next stage — the broader authorisation regime, with commencement dates set by legislation and FCA announcements.

How the UK compares

The EU built one dedicated regulation; the UK is fitting cryptoassets into its existing financial services law, activity by activity. The direction is similar — trading platforms, custody and stablecoin issuance are covered in both — but the legal mechanics differ, and a firm authorised in the EU cannot use that authorisation in the UK. The UK's rules on promotions are among the strictest anywhere, because they apply to any communication aimed at UK consumers, wherever the firm is based.

Overview for education, not legal advice. Rules change — check the official sources. Last reviewed 20 October 2026. Nothing here is an offer or a recommendation to use any crypto-asset service.