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 (FPO23) brought "qualifying cryptoassets" within the FCA's financial promotions regime under section 21 of FSMA. Crypto-assets are classified as Restricted Mass Market Investments (RMMIs), meaning mass marketing is permitted but subject to strict rules. The regime applies to any promotion capable of having effect in the UK, even if communicated from overseas. The FCA issued 146 compliance alerts in the first 24 hours of the regime going live and has since taken action against hundreds of firms. Key overseas exchanges including Bybit and PayPal temporarily withdrew UK services in response. The back-end rules (cooling-off period, appropriateness testing) were subject to a modification by consent until 8 January 2024, at which point all firms had to be fully compliant.
Applies to any person communicating an invitation or inducement to engage in activity relating to qualifying cryptoassets to UK consumers. Qualifying cryptoassets are fungible, transferable cryptographically-secured digital representations of value — excluding e-money, financial instruments already regulated under FSMA, and limited-use cryptoassets. The restriction applies even to firms based outside the UK if the promotion is capable of having effect in the UK. Legally compliant promotions must be: communicated by an FCA-authorised person; communicated by an MLR-registered cryptoasset firm under FCA rules; or approved by an FCA-authorised person.
Key requirements: (1) All promotions must be fair, clear and not misleading (Principle 7, COBS 4). (2) Mandatory standard risk warning: "Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong." (3) 24-hour cooling-off period for first-time investors receiving a Direct Offer Financial Promotion (DOFP). (4) Client categorisation — firms must assess appropriateness before allowing retail clients to invest. (5) Ban on incentives to invest, including refer-a-friend bonuses and sign-up rewards. (6) Promotions must not target consumers whose risk profile makes crypto unsuitable. (7) Consumer Duty applies to authorised firms communicating or approving promotions.
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.