FCA crypto regulation in the UK — what consumers need to know
Quick answer: Crypto exchanges in the UK must register with the FCA. Check the register before you send money. Crypto is high-risk — if a firm goes bust, you usually cannot claim compensation like you can with bank deposits (FSCS).
The FCA is the UK body that oversees many financial firms. It does not ban crypto, but it sets rules to reduce money laundering and misleading adverts. This page explains what that means for ordinary buyers.
FCA registration under the Money Laundering Regulations
Firms conducting cryptoasset exchange, custody, or certain other activities in the UK must register with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended). The FCA assesses whether firms have adequate AML systems and controls. Always check the FCA register before using a provider.
Financial promotions regime
From 8 October 2023, firms cannot communicate crypto financial promotions to UK consumers unless the promotion is made or approved by an FCA-authorised person, or falls within a limited exemption. Promotions must be fair, clear and not misleading, and include prescribed risk warnings. This applies to websites, social media, apps and influencer content targeting UK consumers.
What is not yet fully regulated
Spot trading of unbacked crypto tokens remains outside the full perimeter of FCA investment regulation for most retail activities, though AML registration and promotions rules apply. Stablecoins and tokenised securities are subject to developing rules — the Bank of England and FCA are consulting on systemic stablecoin arrangements.
Consumer protections and FSCS
The FCA warns that cryptoassets are high-risk. If a firm fails, you generally cannot claim under the Financial Services Compensation Scheme. You may have limited recourse through the Financial Ombudsman Service only where the firm is authorised for the relevant regulated activity.
Frequently asked questions
How do I check if a crypto firm is legitimate?+
Search the FCA register for the firm's name and FRN. Use the FCA warning list to check for unauthorised firms.
Are NFTs regulated by the FCA?+
It depends on the NFT's characteristics. Some may fall outside financial regulation; others could be specified investments. The FCA assesses each case against its perimeter guidance.