Crypto Regulatory Monitoring in the United Kingdom

The UK is building its own crypto regulatory framework from the ground up — deliberately separate from the EU's MiCA regime. HM Treasury's phased approach, laid out in its 2023 consultation response and subsequent legislation, is bringing crypto-asset activities under FCA regulation in stages. The financial promotions regime already applies. A full licensing and authorization framework is next. For crypto firms operating in or targeting UK customers, this is a moving target that demands constant attention.

Key Regulatory Bodies

Financial Conduct Authority (FCA) — the primary regulator for crypto-asset businesses in the UK. The FCA currently oversees the anti-money laundering registration regime for crypto firms and enforces the financial promotions rules that apply to crypto assets since October 2023. As of early 2026, the FCA has registered only around 44 firms out of hundreds that applied, reflecting the stringency of its approach. The FCA will become the full licensing authority once the broader crypto regulatory framework takes effect.

HM Treasury — sets the legislative and policy framework for crypto regulation. HM Treasury published its consultation on the future regulatory regime for crypto assets in February 2023 and has been advancing legislation through Parliament to bring crypto activities within the Financial Services and Markets Act 2000 (FSMA) perimeter. Its policy decisions determine the scope of what the FCA will regulate.

Bank of England — focused on financial stability implications of crypto and digital assets. The Bank, through its Financial Policy Committee, assesses systemic risks from crypto markets. It is also leading the exploration of a digital pound (CBDC), with a consultation period that ran through 2024 and a design phase extending into 2026.

HMRC (Her Majesty's Revenue and Customs) — administers the tax treatment of crypto assets. HMRC's crypto-asset reporting framework requires exchanges and platforms to report user transaction data. Capital gains tax, income tax, and VAT treatment of crypto activities are governed by HMRC guidance, which has been updated multiple times since 2021.

Critical Regulations

• Financial Promotions (Crypto) Rules (FCA PS23/6) — since October 8, 2023, all crypto-asset promotions to UK consumers must comply with the FCA's financial promotions regime. This includes cooling-off periods for first-time investors, prominent risk warnings, and a ban on incentives like refer-a-friend bonuses. Firms outside the UK that promote to UK consumers are also caught.
• Money Laundering Regulations 2017 (as amended) — crypto-asset businesses must register with the FCA under the MLRs. Registration requires demonstrating adequate AML/CFT controls, fitness and propriety of senior management, and ongoing compliance reporting. Operating without registration is a criminal offense.
• Property (Digital Assets etc.) Bill — introduced in the House of Lords in September 2024, this bill establishes crypto assets as a distinct category of personal property under English law. It provides legal certainty for custody, collateral, and insolvency treatment of digital assets.
• Financial Services and Markets Act 2023 (crypto provisions) — grants HM Treasury the power to bring crypto-asset activities into the FSMA regulatory perimeter. Specific statutory instruments are expected through 2026-2027 to implement the full authorization regime for exchanges, custodians, lending platforms, and stablecoin issuers.

What You're Missing

The phased approach means regulations arrive in waves. Financial promotions came first. Stablecoin regulation is next. Trading venues, custody, and lending follow. Each phase has its own consultation, draft rules, and implementation timeline. Firms that focused only on the promotions regime may be caught off guard when custody or exchange requirements land with limited transition periods.

FCA enforcement doesn't wait for the full regime. The FCA has been actively pursuing unregistered crypto businesses and non-compliant promotions under existing powers. In 2024, the FCA issued over 1,100 consumer alerts related to unauthorized crypto firms and took enforcement action against multiple firms for promotions breaches — well before the comprehensive licensing framework is in place.

How RegPulse Helps

RegPulse monitors the FCA, HM Treasury, Bank of England, and HMRC for every publication relevant to crypto and digital assets in the UK. When a new consultation paper drops, when the FCA updates its crypto-asset registration guidance, when HMRC revises its tax treatment of staking rewards — you receive same-day alerts with actionable summaries. Stop manually checking four different regulators' websites and let RegPulse consolidate your UK crypto compliance monitoring into a single feed.