Glossary · UK
What is Crypto Financial Promotion Rules?
FCA rules, in force since October 2023, requiring cryptoasset firms marketing to UK consumers to follow strict standards including risk warnings, a 24-hour cooling-off period for first-time investors, and a ban on referral bonuses.
Full Definition
Since 8 October 2023, marketing cryptoassets to UK consumers has been regulated under the FCA's financial promotion regime, meaning cryptoasset businesses must either be FCA-authorised, have an FCA-authorised firm approve their promotions, or fall within a narrow registration exemption for firms registered under separate anti-money-laundering rules. Promotions must be clear, fair and not misleading, and must include prominent risk warnings (such as 'Don't invest unless you're prepared to lose all the money you invest'). The regime bans some previously common marketing incentives — including 'refer a friend' bonuses for new crypto investors — and requires first-time investors with a firm to go through a mandatory 24-hour cooling-off period and pass an appropriateness assessment demonstrating they understand the risks before they can invest. Firms found promoting crypto unlawfully to UK consumers face FCA enforcement action, and the FCA has published lists of unauthorised firms and apps found breaching the rules, alongside broader work to bring cryptoasset trading, lending and staking activities themselves (not just their marketing) into UK regulation.