General information only. CryptoRegHub provides summaries for informational purposes and does not constitute legal or compliance advice. Always verify with official sources and consult qualified legal counsel before making compliance decisions.
CryptoRegHub provides plain-English summaries of crypto regulations for informational purposes only. This does not constitute legal, compliance, or financial advice. Regulations change frequently — always verify information with official sources and consult qualified legal counsel before making any compliance decisions.
From 8 October 2023, the Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023 (SI 2023/612) brought "qualifying cryptoassets" — fungible, transferable cryptoassets other than e-money, fiat currency, existing controlled investments and limited-use tokens — within the financial promotion restriction in section 21 of FSMA. There are four lawful routes: the promotion is communicated by an FCA-authorised person; it is approved by an authorised person (since 7 February 2024 only one holding approver permission under section 55NA or exempt from it); it is communicated by, or on behalf of, a cryptoasset exchange or custodian wallet provider on the FCA's MLR register under article 73ZA of the Financial Promotion Order; or another FPO exemption applies. Firms authorised only for e-money or payment services do not count as authorised persons. The FCA's rules (PS23/6, made by the Cryptoasset Financial Promotions Instrument 2023) classify qualifying cryptoassets as Restricted Mass Market Investments, so COBS 4.12A applies: mass marketing is permitted but subject to the prescribed risk warning and risk summary, a ban on incentives, and four conditions before any direct offer financial promotion to a retail client. The same rules, Principle 7 and the GEN status-disclosure rules are applied to MLR-registered firms; the Consumer Duty applies only to authorised firms. FG23/3 (November 2023) sets out the FCA's expectations on fair, clear and not misleading promotions, with specific guidance on stablecoins, asset-backed tokens, yield products, social media and due diligence. The regime applies to any promotion capable of having effect in the UK, even if communicated from overseas. The back-end rules (cooling-off period, personalised risk warning, categorisation, appropriateness) were subject to a modification by consent until 8 January 2024, at which point all firms had to be fully compliant. From 25 October 2027 the FSMA cryptoassets regime (SI 2026/102) replaces the registered-person route and amends COBS 4.12A (UK-issued qualifying stablecoins leave the RMMI category; non-UK stablecoin promotions need an additional warning; the appropriateness topics become a rule).
Applies to any person communicating, in the course of business, an invitation or inducement to engage in investment activity relating to qualifying cryptoassets where the promotion is capable of having an effect in the UK — including firms based outside the UK and promotions on social media. Qualifying cryptoassets are fungible, transferable cryptographically-secured digital representations of value or contractual rights, excluding e-money, fiat currency and digitally issued fiat currency, investments already regulated as controlled investments under FSMA, and limited-use tokens redeemable only with the issuer. A promotion is lawful only if it is: communicated by an FCA-authorised person; approved by an FCA-authorised person holding approver permission (or exempt from it); communicated by, or on behalf of, a cryptoasset exchange provider or custodian wallet provider on the FCA's MLR register that is not itself authorised, under article 73ZA; or made under another exemption in the Financial Promotion Order. Firms authorised only under the Electronic Money Regulations or Payment Services Regulations are not authorised persons for this purpose. The article 73ZA route is removed when the FSMA cryptoassets regime commences on 25 October 2027.
Key requirements: (1) Communicate cryptoasset promotions only through a lawful route — as an authorised person, with an authorised approver, as an MLR-registered firm under article 73ZA (own promotions, or non-real-time promotions whose content it prepared), or under another FPO exemption; the high net worth, self-certified sophisticated, investor-association and sale-of-goods exemptions do not apply. (2) All promotions must be fair, clear and not misleading (COBS 4.2, Principle 7), balanced, substantiated, with costs and fees disclosed and no misleading claims about regulated status, stability, asset backing or yields. (3) Mandatory risk warning on every promotion: "Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong." — with a "Take 2 mins to learn more" link to the prescribed risk summary, fixed at the top of every web and app page. (4) Ban on incentives to invest, including sign-up bonuses, refer-a-friend rewards, cashback, volume-linked fee rebates and free cryptoassets. (5) Before a first direct offer financial promotion: a 24-hour cooling-off period from the client's request, then a personalised risk warning with an equal-prominence option to leave or continue. (6) Before any direct offer financial promotion: categorise the retail client as a restricted, high net worth or certified sophisticated investor on a signed statement valid for 12 months (self-certified sophisticated is not available for crypto). (7) Before processing an order in response to a direct offer financial promotion: assess the specific type of cryptoasset as appropriate for the client's knowledge and experience, covering the twelve COBS 10 Annex 4G topics, with a 24-hour lock-out after a second failed assessment and no coaching or encouragement to retake. (8) Keep records of every promotion, of categorisation and appropriateness outcomes (5 years) and of any amended risk summary. (9) Firms approving others' promotions need FCA approver permission, must confirm compliance, monitor for the lifetime of the promotion with quarterly attestations, and withdraw approval when it no longer complies. (10) Consumer Duty applies to authorised firms communicating or approving promotions, not to MLR-registered firms.
Always refer to official sources to confirm current requirements. CryptoRegHub summaries are for general guidance only.
Personal criminal liability including imprisonment
This summary is for general informational purposes only and does not constitute legal advice. Always verify with official sources and consult qualified legal counsel.