↓Skip to main content
Table of Contents

Short answer: Crypto is legal in the UK, but today it is only partly regulated. Since 10 Jan 2020, crypto exchanges and custodians have had to register with the FCA for anti-money laundering purposes. Since 8 Oct 2023, anyone marketing crypto to UK consumers has had to follow FCA promotion rules. Neither gives you investor protection: you generally cannot take a complaint to the Financial Ombudsman, and the FSCS will not compensate you if a crypto firm fails. A full FCA regime covering exchanges, brokers, custodians, staking and stablecoins starts on 25 Oct 2027. Firms can apply for authorisation between 30 Sep 2026 and 28 Feb 2027, but applying is not the same as being approved.

Yes. You can legally buy, hold and sell crypto, and HMRC taxes it. The rules restrict how firms run and market crypto businesses, not whether you can own tokens. In England, Wales and Northern Ireland, the Property (Digital Assets etc) Act 2025, in force since 2 Dec 2025, confirms that a thing which is “digital or electronic in nature” can be the object of personal property rights.

Is crypto regulated by the FCA today? #

Only partly. The FCA said in its 30 Jun 2026 announcement that until the new rules take effect in October 2027, its “oversight of crypto will continue to be limited to financial promotions and anti-money laundering controls”. Its consumer guide still calls crypto “largely unregulated in the UK”.

What does FCA registered mean for a crypto exchange? #

From 10 Jan 2020 the FCA became the anti-money laundering supervisor for crypto businesses. Exchanges, crypto ATMs, peer-to-peer providers and custodian wallet providers must register under the Money Laundering Regulations 2017 before offering their services in the UK.

Registration is a financial crime check, not a review of the firm’s products or how it treats you. The FCA says registration “is not a recommendation or endorsement”, and that being registered “does not mean your customers benefit from the protections of the Financial Ombudsman Service or the Financial Services Compensation Scheme”. If a registered firm’s services fall outside those schemes, it must tell you before you start dealing with it.

Registered vs authorised. “Authorised” is the status banks, brokers and fund managers hold under the Financial Services and Markets Act 2000 (FSMA), with conduct rules attached. Crypto exchanges today are only “registered”. Firms already authorised for other business will still need to vary their permissions to carry out the new crypto activities.

What are the FCA’s crypto marketing rules? #

Since 8 Oct 2023, every crypto promotion aimed at UK consumers must come through one of four legal routes: an FCA-authorised firm, an unauthorised firm whose promotion an authorised firm has approved, a crypto business registered under the Money Laundering Regulations, or an exemption. This covers apps, social media and overseas firms. Promoting crypto outside these routes is a criminal offence carrying up to two years in prison, an unlimited fine, or both.

The FCA’s policy statement PS23/6 classes crypto as a “Restricted Mass Market Investment” and sets out what you should see:

  • A 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. Take 2 mins to learn more.”
  • No incentives: the FCA banned “refer a friend” bonuses and other incentives to invest.
  • A 24-hour cooling-off period: if you are new to a firm, you must wait at least 24 hours and confirm again before you can see its offer to buy.
  • Client categorisation: you declare yourself a restricted, high net worth or certified sophisticated investor. Most people are restricted investors, confirming they will keep high-risk investments like these to no more than 10% of their net assets.
  • An appropriateness test: the firm must check you have the knowledge and experience to understand the risks.

These rules govern how crypto is sold, not whether the firm is safe. The FCA’s own verdict: “Even with these rules, crypto still remains high risk with no protections if something goes wrong.”

What is changing under the FCA’s new crypto regime? #

The legal basis is the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102), made on 4 Feb 2026. Under regulation 1, most of it comes into force on 25 Oct 2027, the “full commencement day”. From then, these become regulated activities that need FCA authorisation under FSMA:

  • operating a crypto trading platform (an exchange);
  • dealing in crypto as principal or as agent, and arranging deals (brokers and trading apps);
  • safeguarding customers’ crypto (custody);
  • arranging crypto staking for customers;
  • issuing a qualifying stablecoin from the UK.

The regulations also add disclosure rules for public offers and for admitting tokens to trading platforms, plus a market abuse regime covering insider dealing and market manipulation.

The FCA published its final rules on 30 Jun 2026 in five policy statements, PS26/9 to PS26/13. The headlines:

  • the Consumer Duty applies to crypto firms;
  • custodians must follow new client-asset rules (CASS 17);
  • crypto lending and borrowing keeps retail protections, including appropriateness tests, consent, over-collateralisation and negative balance protection;
  • staking requires disclosures and client consent;
  • firms must meet capital and stress-testing requirements;
  • decentralised finance (DeFi) is caught where there is “an identifiable controlling entity”.

David Geale, the FCA’s executive director of payments and digital finance, summed up the trade-off: “firms will be held to similar standards to other financial providers, though we can’t regulate away risk.”

Does applying through the FCA gateway mean a firm is approved? #

No. The authorisation gateway opened on 30 Sep 2026 and closes on 28 Feb 2027. Applications go through the FCA’s Connect system, and firms registered under the Money Laundering Regulations get “no automatic conversion”. The FCA aims to decide on-time applications before 25 Oct 2027. Otherwise, what happens depends on the firm:

  • Applied in the window, still undecided: a saving provision lets the firm carry on until its application is finally decided, including any appeal to the Upper Tribunal.
  • Applied late, not yet authorised: under a transitional provision, the firm can only service existing contracts and cannot sign new ones with UK customers.
  • Never applied: the firm must wind down its UK business before 25 Oct 2027.

Until it is authorised, a firm that says it “has applied” holds no new crypto permissions.

How will stablecoins be regulated? #

From 25 Oct 2027, issuing a stablecoin from the UK needs FCA authorisation. The FCA’s rules require UK-issued qualifying stablecoins to be “fully backed and redeemable at par”. If HM Treasury recognises a stablecoin as systemic, the Bank of England joins in. Under their joint approach of 30 Jun 2026, the FCA keeps conduct and consumer protection, while the Bank handles prudential rules, such as backing assets, and failure arrangements.

What protects you, and what doesn’t? #

Today. The FCA’s crypto scams guidance is blunt: if you invest in crypto, “you generally won’t have access to the Financial Ombudsman Service if you want to complain”, and “you also won’t be protected by the Financial Services Compensation Scheme (FSCS) if the firm goes out of business”.

Exchange failure. The FCA lists “the failure of a firm, poor segregation of client funds or cyberattacks” among the ways you could lose all your money. No compensation scheme stands behind a collapsed exchange.

From 25 Oct 2027. In PS26/13 the FCA sets out its plan to extend the Ombudsman’s compulsory jurisdiction to authorised firms’ new regulated crypto activities, so eligible customers could complain about them. But redress is “unlikely” where a loss “has been caused by poor market performance”. The FCA also says: “We do not plan to extend FSCS cover to new regulated cryptoasset activities.” In June the FCA said it would consult later in 2026 on handling crypto firm failures.

Crypto ETNs and shares. cETNs carry no FSCS cover either. For shares held with an authorised broker, the FSCS can pay up to £85,000 per eligible person, per firm, if the firm fails, but never covers a fall in value.

How can stock investors get crypto exposure through regulated markets? #

Crypto ETNs. From 8 Oct 2025, the FCA opened retail access to crypto exchange-traded notes (cETNs) traded on a UK recognised investment exchange. An ETN is a debt security that tracks an asset; our guide to what an ETN is explains the structure. Notes must be on the FCA’s Official List and count as Restricted Mass Market Investments, so the same incentive ban, appropriateness test, categorisation and cooling-off apply. In the FCA’s words, “there won’t be coverage from the Financial Services Compensation Scheme”. Our crypto ETN UK guide and bitcoin ETN guide cover the London-listed notes, and our crypto ETF UK guide lists platforms.

ISAs and SIPPs. cETNs could go in a stocks and shares ISA from 8 Oct 2025 to 5 Apr 2026. From 6 Apr 2026, under SI 2026/248, HMRC’s ISA manager guidance says “no new subscriptions, purchases or switching of cETNs are permitted into a stocks and shares ISA”. New ISA purchases must use an Innovative Finance ISA; earlier holdings can stay. HMRC’s cETN policy paper also allows cETNs in registered pension schemes, including SIPPs, from 8 Oct 2025. See ETP Insider’s guide to crypto ETNs and ISAs in the UK.

Crypto shares. Coinbase, Strategy and bitcoin miners are ordinary listed companies. Shares are qualifying investments on HMRC’s ISA list, so they can generally sit in a stocks and shares ISA. Their price reflects the business as well as crypto markets.

Crypto derivatives. The FCA’s retail ban remains, so be wary of anyone offering them to you.

How is crypto taxed in the UK? #

Selling, swapping or spending crypto can trigger Capital Gains Tax, and staking rewards are taxed as income; our crypto tax UK guide covers the rules. Since 1 Jan 2026, UK crypto platforms have been gathering user data under the Cryptoasset Reporting Framework, with first reports to HMRC, covering calendar 2026, due between 1 Jan and 31 May 2027.

How do you check a crypto firm before you use it? #

  1. Search the FCA Register. Type in the FCA Firm Checker address yourself rather than clicking email links. Check what the firm is registered or authorised to do and that its contact details match. If it is not listed, the FCA says to avoid it.
  2. Know the status you need. Until 25 Oct 2027, registration under the Money Laundering Regulations is the minimum. After that, look for FSMA authorisation with crypto permissions.
  3. Check the Warning List. The FCA’s Warning List, linked from its Financial Services Register page, carries warnings about firms running scams or operating without authorisation, including clones of genuine firms.
  4. Expect the friction. A compliant firm shows the risk warning, asks appropriateness and categorisation questions, and makes first-time customers wait 24 hours. The FCA says that if you are offered an incentive and do not see the warnings, the firm “could be illegal, or even a scam”.
  5. Watch for scam signs. Unexpected contact, pressure to act fast, too-good-to-be-true returns and celebrity adverts on social media are classic signals, as are offers to recover lost money for a fee.
  6. Assume no safety net. Only invest what you could afford to lose entirely, whichever firm you use.

FAQ #

Is crypto legal in the UK? Yes. Buying, holding and selling crypto is legal. The rules cover how firms operate and market crypto.

Is crypto regulated by the FCA? Partly. The FCA supervises crypto firms for anti-money laundering and regulates crypto marketing. Full regulation of exchanges, brokers, custodians, staking and stablecoin issuers starts on 25 Oct 2027.

What does FCA registered mean for a crypto exchange? The firm has passed the FCA’s anti-money laundering registration. It is not an endorsement, and it does not give you access to the Financial Ombudsman or the FSCS.

When does the new UK crypto regime start? On 25 Oct 2027. Firms can apply for authorisation from 30 Sep 2026 to 28 Feb 2027.

Is my crypto protected by the FSCS? No. The FCA does not plan to extend FSCS cover to crypto activities under the new regime, and cETNs have no FSCS cover.

Can I hold crypto in an ISA? Not crypto itself. cETNs are the route, but since 6 Apr 2026 new purchases must go into an Innovative Finance ISA. Notes already held in a stocks and shares ISA can stay, and SIPPs can hold them too.

This is general information, not legal or financial advice.

Not financial advice. Capital at risk. Crypto is highly volatile and crypto ETNs carry issuer risk. UK rules are changing — check the FCA Register, your broker and a qualified adviser before you invest.

↑