How is crypto regulated in the UK, and what changes in 2027?
Today the UK regulates crypto mainly through anti-money-laundering registration and strict advertising rules. A full licensing regime has been written into law and starts in October 2027. Status as of October 2026.
Education only, not investment, tax or legal advice. Crypto-assets are high-risk — risk disclosure.
The short answer
As of October 2026, UK crypto firms must register with the Financial Conduct Authority (FCA) for anti-money-laundering purposes and follow strict promotion rules, but most crypto activity is not yet fully authorised and regulated. A new FCA licensing regime for crypto starts on 25 October 2027.
Key takeaways
- Until October 2027 the FCA's crypto role is mainly anti-money-laundering registration and rules on how crypto is advertised to the public.
- Since 8 October 2023, crypto promotions to UK consumers must carry risk warnings, cannot offer joining or referral bonuses, and include a 24-hour cooling-off period for first-time investors.
- FCA registration is not an endorsement and does not by itself give access to the Financial Ombudsman Service or FSCS compensation.
- New regulations made in February 2026 bring trading platforms, custody, stablecoin issuance, dealing and staking into full FCA authorisation from 25 October 2027.
- Retail investors can buy crypto exchange traded notes listed on a UK recognised exchange, but crypto derivatives remain banned for retail clients.
Is crypto regulated in the UK right now?
Partly. The Financial Conduct Authority (FCA) is the UK's conduct regulator for financial firms. As of October 2026, its oversight of crypto is limited to two things: anti-money-laundering controls and the rules on financial promotions, meaning adverts and other marketing2. Most crypto services are not yet regulated activities that need full FCA authorisation.
The first pillar is registration. Businesses that run cryptoasset exchange services or custodian wallets in the UK must register with the FCA under the Money Laundering Regulations 2017 before they start7. That requirement was added to the regulations with effect from 10 January 20201112. Registration is about anti-money-laundering controls; it is not the same as being authorised to carry on regulated financial services10.
Since 1 September 2023 the same regulations have also had a part on cryptoasset transfers1314. It is the UK's version of the international Travel Rule: a crypto business sending a transfer to another crypto business must make sure it carries the names of the sender and recipient and their account numbers, or a unique transaction identifier13.
The second pillar is promotion. Anyone marketing crypto to UK consumers, including firms based overseas, must follow the FCA's financial promotion rules6. That is why UK users see risk warnings, appropriateness questions and waiting periods on crypto apps.
Who does what in UK crypto oversight (as of October 2026) Source: [1]
| Area | Current position | From 25 October 2027 |
|---|---|---|
| Anti-money-laundering | FCA registration under the Money Laundering Regulations | Replaced by full FCA authorisation |
| Trading platforms, custody, dealing | Not yet authorised activities | Need FCA authorisation |
| Issuing stablecoins in the UK | Not yet an authorised activity | Need FCA authorisation |
| Market abuse | Outside current crypto oversight | Insider dealing and manipulation rules apply |
What do the crypto promotion rules mean for you?
In policy statement PS23/6, published on 7 June 2023, the FCA put crypto in a category called Restricted Mass Market Investments. It can be marketed to the general public, but only with safeguards. The rules took effect on 8 October 20236.
- Clear risk warnings on promotions, on top of the general duty to be fair, clear and not misleading6.
- No incentives to invest: refer-a-friend bonuses and new joiner rewards are banned6.
- A 24-hour cooling-off period for first-time investors with a firm before they can go ahead6.
- Client categorisation and appropriateness checks, so firms ask whether you understand the product before you buy6.
Risk warning
Rules on adverts are not a safety net
What does FCA registration actually tell you?
Less than many people assume. The FCA says registration of a crypto business is not a recommendation or endorsement, and that customers do not automatically gain access to the Financial Ombudsman Service (the free complaints body) or the Financial Services Compensation Scheme (FSCS) through it7. Registered firms must tell customers that these usual protections do not apply7.
The FCA's consumer guidance draws the same line between authorised and merely registered firms: only authorised firms come with Ombudsman and FSCS protection, and registered firms cannot offer regulated products10. Our guide on how to check a regulated firm shows how to look a firm up on the FCA's register.
What changes when the new regime starts in October 2027?
The legal basis is The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, numbered SI 2026/1025 and made on 4 February 20261. They create new regulated activities, so firms carrying them on in the UK will need FCA authorisation rather than simple registration1.
- Issuing a qualifying stablecoin in the UK4
- Operating a qualifying cryptoasset trading platform4
- Dealing in qualifying cryptoassets as principal or as agent, and arranging deals4
- Safeguarding (holding in custody) qualifying cryptoassets4
- Qualifying cryptoasset staking4
The FCA published its final rules on 30 June 2026 in five policy statements, PS26/9 to PS26/13, covering admissions, disclosures and market abuse, stablecoin issuance, the activities themselves, prudential (capital) requirements and how the wider FCA Handbook applies3. Its announcement lists stablecoin issuance, custody, trading platforms, intermediaries, staking, lending and borrowing, admissions and disclosures, and market abuse2. Firms will face capital and stress-testing requirements, and the Consumer Duty applies2. The Handbook statement says most firms carrying on the new regulated crypto activities will be subject to the FCA's dispute resolution rules and to the Financial Ombudsman Service15.
Figure · UK crypto rules: key dates
- Jan 2020AML registration
- Sep 2023UK Travel Rule
- Oct 2023Promotion rules apply
- Feb 2026Crypto regulations made
- Sep 2026Applications open
- Oct 2027New regime starts
The application window opened on 30 September 2026 and closes on 28 February 20272. The full regime applies from 25 October 20271. Until then, the current registration and promotion rules remain the main protections.
Can UK investors buy crypto ETNs or crypto derivatives?
In January 2021 the FCA banned the sale, marketing and distribution to retail clients of derivatives and exchange traded notes (ETNs) that reference unregulated cryptoassets9. It has since relaxed the ETN part: from 8 October 2025, retail consumers can buy crypto ETNs that are on the FCA's Official List and admitted to trading on a UK recognised investment exchange8. These products are also treated as Restricted Mass Market Investments, so the same promotion safeguards apply8.
The ban on selling crypto derivatives to retail clients stays in place9. If an app offers UK retail customers leveraged crypto derivatives, that is a reason to check very carefully who you are dealing with. For how leverage magnifies losses, see our leverage calculator.
What mistakes do people make about UK crypto rules?
Common beginner mistakes
Reading registration as approval
Anti-money-laundering registration is not an endorsement and does not bring Ombudsman or FSCS cover with it.
Assuming the 2027 rules already apply
The new authorisation regime is law but does not start until 25 October 2027. Until then, protections are narrower.
Treating a cooling-off period as a refund right
The 24-hour wait applies before a first investment goes ahead. It does not undo losses after you buy.
Trusting a firm's own description
Look the firm up on the FCA register yourself and use the contact details shown there, not those in an advert.
Frequently asked questions
Is crypto legal in the UK?
Will FSCS protect my crypto from October 2027?
The FCA's final rules bring most firms doing the new regulated crypto activities under the Financial Ombudsman Service15, but the FCA material reviewed for this page, as of October 2026, does not say FSCS compensation will cover crypto holdings. Today, registration alone gives neither7. Check the FCA's current guidance before relying on any protection.
Do overseas crypto exchanges have to follow UK rules?
If they market crypto to UK consumers, the FCA's financial promotion rules apply to them6.
What is the difference between authorised and registered?
Authorised firms have permission to carry on regulated activities and come with Ombudsman and FSCS protection; registered firms meet anti-money-laundering requirements only and cannot offer regulated products10.
The bottom line
As of October 2026, UK crypto oversight rests on anti-money-laundering registration and strict promotion rules, with a full FCA licensing regime for platforms, custody, dealing, staking and stablecoins due on 25 October 2027. Until then, treat FCA registration as a minimum check, not a guarantee, and assume the usual compensation and complaint protections may not apply.
Sources
- A new regime for cryptoasset regulation (page updated 30 September 2026) — Financial Conduct Authority, 2026 Primary source
- FCA sets landmark crypto rules to cement the UK's place as a global hub — Financial Conduct Authority, 2026 Primary source
- Overview of our cryptoassets regime policy statements — Financial Conduct Authority, 2026 Primary source
- Explanatory Memorandum to The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 — HM Treasury via legislation.gov.uk, 2026 Primary source
- The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102) — legislation.gov.uk, 2026 Primary source
- PS23/6: Financial promotion rules for cryptoassets — Financial Conduct Authority, 2023 Primary source
- Cryptoassets: AML / CTF regime — Financial Conduct Authority, 2026 Primary source
- Information for firms looking to offer crypto exchange traded notes — Financial Conduct Authority, 2025 Primary source
- FCA to lift ban on crypto ETNs to support UK growth and competitiveness — Financial Conduct Authority, 2025 Primary source
- How to check a firm or individual is authorised — Financial Conduct Authority, 2026 Primary source
- The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, regulation 56 (with amendment notes) — legislation.gov.uk, 2017 Primary source
- The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (SI 2019/1511), regulation 1 — legislation.gov.uk, 2019 Primary source
- Money Laundering Regulations 2017, Part 7A: Cryptoasset Transfers (with amendment notes) — legislation.gov.uk, 2023 Primary source
- The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 (SI 2022/860), regulation 1 — legislation.gov.uk, 2022 Primary source
- PS26/13: Crypto regime: application of the FCA Handbook for regulated cryptoasset activities — Financial Conduct Authority, 2026 Primary source
How we checked this page: every figure above links to the numbered source it came from. Spotted an error? Tell the desk — see our editorial policy.
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