FCA Crypto Rules: What UK Traders Need to Know

When dealing with FCA crypto rules, the framework the UK’s Financial Conduct Authority uses to regulate crypto assets, exchanges and service providers. Also known as FCA crypto regulation, it sets the ground rules for anyone offering or promoting crypto in the UK.

These rules sit inside the broader UK crypto regulation, the collection of laws, guidance notes and enforcement actions that govern digital assets across the United Kingdom, which also covers stablecoins and tokenised securities.

One of the biggest hurdles for platforms is crypto exchange licensing, the process by which a crypto exchange must obtain FCA permission to operate legally and protect customer funds. Without this licence, an exchange can be shut down or face hefty fines.

Alongside licensing, the FCA demands strict AML/KYC requirements, anti‑money‑laundering and know‑your‑customer checks designed to stop illicit funds from flowing through crypto services. Failure to comply can trigger enforcement notices and bans.

Understanding FCA crypto rules helps you avoid costly mistakes.

Key Areas Covered by the FCA

Financial promotions are tightly policed. Any marketing material that talks about crypto investments must pass the FCA’s promotion standards, meaning clear risk warnings, no exaggerated returns and a transparent explanation of who is responsible for holding assets. Ignoring these rules can lead to the advert being pulled and the promoter being fined.

Crypto asset classification also matters. The FCA distinguishes between "crypto‑assets" that are securities, e‑money tokens and unregulated tokens. The classification determines whether the asset falls under existing financial services rules, affecting everything from custody obligations to tax treatment.

Enforcement is not just theoretical. In recent years the FCA has issued cease‑and‑desist orders, levied fines over £1 million and even barred firms from operating in the UK. These actions signal that the regulator expects real‑world compliance, not just paper‑based policies.

Staying compliant is a step‑by‑step process: register with the FCA, implement robust AML/KYC checks, ensure every promotion meets the FCA’s risk disclosure standards, classify each token correctly, and maintain ongoing monitoring of transactions. By treating compliance as an ongoing program rather than a one‑off checklist, firms can reduce the risk of penalties and build trust with customers.

Below you’ll find a curated list of articles that break down each of these points, from licensing checklists to real‑world case studies, so you can apply the rules to your own trading strategy.