Crypto regulation in the United Kingdom

The rules in detail

Crypto is legal to own and trade in the United Kingdom as of March 2026. There is no ban and crypto is not legal tender. Until now, the main controls on crypto firms have been the anti money laundering registration regime and the financial promotions rules. A wider conduct regime is being introduced that will bring most cryptoasset activities inside the framework that already governs other financial services. This means the picture is one of two layers: the rules that apply today, and the new authorisation regime that is being phased in.

FCA anti money laundering registration

A business carrying on cryptoasset activity by way of business in the United Kingdom must register with the Financial Conduct Authority (FCA) under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, and run anti money laundering and counter terrorism financing programmes. The FCA has applied a demanding standard to these applications, and many firms have been refused or withdrawn. This registration duty is current to June 2026 and applies to exchange and custodian wallet providers among others.

The financial promotions regime

Since 8 October 2023, the marketing of cryptoassets to United Kingdom consumers has fallen under the financial promotions regime. A promotion must be clear, fair, and not misleading, must carry prescribed risk warnings, and must come from or be approved by an authorised person, with a cooling off period for first time investors and a ban on certain incentives. The regime reaches overseas firms that direct promotions at United Kingdom consumers. These rules are current to June 2026.

The new FSMA regime

HM Treasury has laid legislation to bring cryptoasset activity into the Financial Services and Markets Act 2000 (FSMA). It creates regulated activities including operating a cryptoasset trading platform, dealing in cryptoassets, arranging deals in cryptoassets, safeguarding cryptoassets, and issuing a qualifying stablecoin. Firms carrying on these activities will need full FCA authorisation, a higher bar than the current anti money laundering registration. The FCA has set out a phased path, including a pre application support service and application forms during 2026 and an authorisation gateway opening in stages, with the regime expected to take effect on 25 October 2027. As of March 2026 the detailed rules are still being consulted on and finalised.

Stablecoins, derivatives, and exchange traded notes

The Bank of England leads on stablecoins and payment systems that could become systemically important, working alongside the FCA on the issuance and use of qualifying stablecoins. Separately, since 6 January 2021 the FCA has restricted the sale of crypto derivatives and certain crypto exchange traded notes to retail consumers. In 2025 the FCA proposed allowing retail access to crypto exchange traded notes that trade on an FCA recognised investment exchange, subject to the financial promotions and disclosure rules. As of March 2026 the precise availability of these products has been changing, so confirm the current position before relying on any one of them.

How to act legally in the United Kingdom

For individuals, the practical path is clear. Use a platform that is registered with the FCA and serves United Kingdom residents, complete its identity checks, and keep records for tax. Several platforms operate for United Kingdom users as of March 2026, with the product set sometimes narrower than for other markets because of the restrictions on derivatives and some retail products.

Regulator and sources

• Financial Conduct Authority (FCA) anti money laundering registration, the financial promotions regime, and the new cryptoasset regime materials, current to June 2026.
• HM Treasury legislation bringing cryptoasset activities within FSMA, expected to take effect on 25 October 2027.
• Bank of England oversight of systemic stablecoins and payment arrangements.

Frequently asked questions

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