Crypto Law Profile

FCA Financial Promotion Rules for Cryptoassets

UK rules governing promotions of qualifying cryptoassets to retail consumers. The regime classifies them as restricted mass market investments and applies risk warnings, incentive limits, cooling-off, categorisation and appropriateness requirements.

United Kingdom Effective Regulation Oct 8, 2023
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At a glance

Status In force across the United Kingdom since 8 October 2023.
Scope Covers qualifying cryptoasset promotions capable of reaching UK consumers, including from overseas.
Classification Treats qualifying cryptoassets as restricted mass market investments.
Legal basis FCA 2023/27 operates with section 21 FSMA and SI 2023/612.

Overview

The FCA Financial Promotion Rules for Cryptoassets are the United Kingdom’s operative marketing regime for financial promotions involving qualifying cryptoassets. The core rule-making instrument is the Cryptoasset Financial Promotions Instrument 2023 (FCA 2023/27), made by the Financial Conduct Authority on 29 June 2023 and in force from 8 October 2023. It operates alongside section 21 of the Financial Services and Markets Act 2000 and the Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023.

The regime regulates invitations or inducements to engage in investment activity that concern qualifying cryptoassets and are capable of having effect in the UK. It is a marketing and consumer-protection framework rather than a complete licensing regime for every cryptoasset activity.

Scope and lawful communication routes

The statutory definition broadly covers fungible and transferable cryptographically secured digital representations of value or contractual rights, while excluding electronic money and investments already controlled elsewhere in the Financial Promotion Order. The FCA states that the regime can apply regardless of where the promoter is based or which technology is used, including websites, mobile applications, social media and online advertising directed at or capable of reaching UK consumers.

Under the current framework, a qualifying promotion generally needs to follow one of four routes: communication by an FCA-authorised person; approval by an appropriately permitted authorised person; communication by an FCA-registered cryptoasset business using the bespoke Money Laundering Regulations exemption for its own promotions; or reliance on another applicable Financial Promotion Order exemption. Since 7 February 2024, authorised firms generally require FCA permission to approve promotions for unauthorised persons, subject to statutory exemptions.

Core FCA cryptoasset promotion requirements

The FCA categorised qualifying cryptoassets as restricted mass market investments. The consolidated requirements sit principally in COBS 4.12A, together with the broader rule that communications must be fair, clear and not misleading. Key elements include:

  • Risk warnings and summaries: in-scope promotions generally carry the FCA-prescribed high-risk warning. Digital promotions ordinarily link to a risk summary, and the Handbook specifies prominence and presentation standards.
  • Incentive restrictions: monetary and non-monetary incentives to invest are generally prohibited. The current rules contain a narrow exception for an incentive solely connected with transferring an existing restricted mass market investment, provided it is not structured to encourage further investment.
  • Positive friction: a first direct-offer journey generally includes a personalised risk warning and a cooling-off period of at least 24 hours before the direct offer is communicated.
  • Client categorisation: direct offers are limited to retail clients within permitted categories supported by a current statement. For a restricted-investor statement, the Handbook describes a 10% aggregate limit across restricted mass market investments.
  • Appropriateness: an application or order made in response to a direct offer is processed only after the relevant cryptoasset has been assessed as appropriate for the retail client under the applicable rules.

The FCA’s FG23/3 guidance explains its expectations for applying the fair, clear and not misleading standard, including due diligence on claims and clear treatment of risks, costs and complex business models. The guidance supports the rules but does not create separate legal obligations.

Implementation, enforcement and current status

Most measures applied from 8 October 2023. Eligible authorised or Money Laundering Regulations-registered firms that obtained a temporary modification could delay the personalised warning, 24-hour cooling-off, categorisation and appropriateness elements until 8 January 2024. That modification has expired, so the delayed requirements now apply to participating firms.

As of 18 June 2026, the regime remains in force. Promotions outside a lawful section 21 route may amount to a criminal offence, and the FCA has used warnings, takedown requests and other supervisory or enforcement measures against non-compliant promotions.

Interaction with the incoming UK cryptoasset regime

The FCA expects a broader FSMA cryptoasset authorisation regime to commence on 25 October 2027. Its application window is scheduled for 30 September 2026 through 28 February 2027. FCA materials indicate that this transition will affect how some businesses may communicate promotions, including reliance on section 21 approvers, but it does not displace the present rules before commencement. This profile is a legal-reference summary and not legal advice.

Key provisions

Four lawful communication routes

A promotion generally needs an authorised, approved, MLR-registered or otherwise exempt route under section 21 FSMA. FCA rules apply to the principal regulated routes.

Regulatory perimeter Oct 8, 2023 Source

Fair, clear and not misleading

Promotions must be fair, clear and not misleading. FG23/3 explains FCA expectations for claims, risks, costs, business models and due diligence.

Disclosure & marketing Oct 8, 2023 Source

Prescribed risk warnings

In-scope promotions generally carry the FCA-prescribed high-risk warning and an accessible risk summary presented with the prominence required by COBS 4.12A.

Disclosure & marketing Oct 8, 2023 Source

Incentive restrictions

Investment incentives are generally prohibited. Current COBS permits a narrow incentive solely for transferring existing holdings where it does not encourage further investment.

Consumer protection Oct 8, 2023 Source

Cooling-off and personalised warning

A first direct-offer journey generally includes a personalised warning and a pause of at least 24 hours before the direct offer is communicated.

Consumer protection Oct 8, 2023 Source

Categorisation and appropriateness

Direct offers are limited to permitted client categories. An order is processed only after the qualifying cryptoasset has been assessed as appropriate under the applicable rules.

Consumer protection Oct 8, 2023 Source

Cross-border and technology-neutral scope

The regime can reach promotions from overseas and communications made through websites, apps, social media and online advertising when UK consumers are within scope.

Regulatory perimeter Oct 8, 2023 Source

Timeline

  1. Statutory perimeter order made

    SI 2023/612 brought qualifying cryptoasset promotions into the Financial Promotion Order and created the registered-person exemption.

    Enacted Source

  2. PS23/6 policy statement issued

    The FCA published its final policy position and near-final Handbook rules for qualifying cryptoasset promotions.

    Enacted Source

  3. FCA 2023/27 made

    The FCA Board made the Cryptoasset Financial Promotions Instrument 2023, confirming the near-final rules without substantive change.

    Enacted Source

  4. Regime entered into force

    Qualifying cryptoasset promotions entered the UK financial promotion regime and the FCA rules became operative.

    In force Source

  5. FG23/3 final guidance published

    The FCA issued non-Handbook guidance on applying the fair, clear and not misleading standard to cryptoasset promotions.

    Enacted Source

  6. Back-end modification expired

    Temporary modifications ended; delayed cooling-off, warning, categorisation and appropriateness rules applied to participating firms.

    In force Source

  7. Financial promotion approver gateway took effect

    Authorised firms generally needed FCA permission to approve promotions for unauthorised persons, subject to exemptions and transition.

    In force Source

Who it affects

Actors

Financial Conduct Authority, HM Treasury

Asset classes

Cryptoassets

Official sources

Cryptoasset Financial Promotions Instrument 2023 Financial Conduct Authority Legal instrument Jun 29, 2023 English Primary / very high PS23/6: Financial promotion rules for cryptoassets Financial Conduct Authority Policy statement Jun 8, 2023 English Primary / very high Financial Promotion (Amendment) Order 2023 UK Legislation Statutory instrument Jun 7, 2023 English Primary / very high FCA Handbook COBS 4.12A Financial Conduct Authority Consolidated Handbook rules English Primary / very high FG23/3: Cryptoasset financial promotions guidance Financial Conduct Authority Finalised guidance Nov 2, 2023 English Primary / high A new regime for cryptoasset regulation Financial Conduct Authority Regulatory transition page Jan 8, 2026 English Primary / high

Editorial note

This profile treats FCA 2023/27 and the consolidated FCA Handbook as the core rule set, with SI 2023/612 as the statutory perimeter instrument. FG23/3 is supporting non-Handbook guidance and does not create new obligations.