UK crypto rules currently do three things. Since 8 October 2023, anyone marketing cryptoassets to UK consumers has had to carry prominent risk warnings, give first-time investors with a firm a 24-hour cooling-off period, test whether the product is appropriate and offer no incentives. Since 8 October 2025, retail investors have been able to buy crypto exchange traded notes (cETNs) listed on an FCA-recognised exchange, and since 6 April 2026 new cETN purchases inside an ISA have had to go through an Innovative Finance ISA. A full authorisation regime, finalised by the FCA on 30 June 2026, starts on 25 October 2027. Until then most crypto activity sits outside regulation, and the usual safety nets do not apply.
UK crypto rules: the timeline
| Date | What changed | Source |
|---|---|---|
| 8 October 2023 | Financial promotion rules for cryptoassets take effect (PS23/6) | FCA |
| 1 August 2025 | FCA announces retail access to cETNs | FCA |
| 8 October 2025 | Retail investors can buy cETNs traded on a recognised investment exchange; cETNs allowed in registered pension schemes and, initially, stocks and shares ISAs | FCA; HM Treasury and HMRC |
| 4 February 2026 | Parliament passes the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 | FCA |
| 6 April 2026 | New cETN purchases in ISAs only through the Innovative Finance ISA | HMRC |
| 30 June 2026 | FCA publishes final rules, policy statements PS26/9 to PS26/13 | FCA |
| 30 September 2026 to 28 February 2027 | Application window for existing firms that want to rely on the transitional savings provisions | FCA |
| 1 January to 31 May 2027 | UK crypto service providers make their first reports of user data to HMRC under the Cryptoasset Reporting Framework, where required | HMRC |
| 25 October 2027 | Full scope of regulated cryptoasset activities begins | FCA |
The promotion rules since October 2023
The FCA’s policy statement PS23/6, published in June 2023, classed cryptoassets as Restricted Mass Market Investments. That allows them to be marketed to the public, but only with clear risk warnings, a ban on incentives to invest, client categorisation, appropriateness assessments and what the FCA calls positive frictions. The rules apply to all firms marketing cryptoassets to UK consumers, including firms based overseas.
In practice, the FCA’s review of firms’ preparations sets out the steps a customer should meet: a personalised risk warning with a clear option to leave, a 24-hour cooling-off period, and an appropriateness assessment testing whether the customer understands the risks. The policy statement says the cooling-off rule applies to first-time investors with a specific firm, not to every transaction. The ban on incentives covers any monetary or non-monetary reward, including sign-up bonuses, whether or not you need to invest to get it.
For a reader, the test is simple. The FCA says that whenever you invest in crypto you should see prominent warnings about the risk of losing your money and should not be offered free gifts to join or bonuses for referring a friend. If you see no warning and are offered an incentive, the FCA says the company is not following its rules and could be acting illegally, or be a scam.
Crypto ETNs: retail access and the ISA switch
A cETN is a debt security traded on a venue or market operated by a UK-recognised stock exchange; it pays no periodic coupon and its return tracks the performance of an unregulated transferable asset, in HMRC’s definition. The FCA banned retail sales of crypto ETNs in January 2021 and reopened access from 8 October 2025, provided the notes trade on a recognised investment exchange. Promotion rules and the Consumer Duty apply to firms offering them, but the FCA said there would be no FSCS coverage. Its ban on selling crypto derivatives to retail investors remains.
The wrapper rules changed twice. Under the HM Treasury and HMRC policy of 8 October 2025, cETNs could be held in registered pension schemes from that date and were initially eligible for stocks and shares ISAs, before being reclassified as Innovative Finance ISA investments from 6 April 2026. HMRC’s guidance for ISA managers, updated on 6 April 2026, now says cETNs cannot be bought or switched into a stocks and shares ISA, while those already held there immediately before 6 April 2026 remain qualifying for as long as they stay in that account. The government said it will keep the position under review with a view to restoring stocks and shares ISA eligibility later; it gave no date.
An Innovative Finance ISA manager offering cETNs must issue the FCA’s restricted mass-market risk summary, check the investor understands the risks and apply the cooling-off rules, under the same HMRC guidance. Whether your ISA provider offers an Innovative Finance ISA that holds cETNs is up to the provider. For how exchange-traded products are put together, see our explainer on what an ETF is; for wrappers generally, our guide to tax-efficient investing.
The 2027 regime
The FCA’s overview of its final rules, published on 30 June 2026, says the regime rests on the Cryptoassets Regulations passed by Parliament on 4 February 2026, which bring a broad range of crypto activities inside the FCA’s remit for the first time. Until now its role was limited to anti-money laundering registration and financial promotions. The full scope of regulated activities expands from 25 October 2027.
Five policy statements set the rules: PS26/9 on admission of cryptoassets to trading, disclosure and market abuse; PS26/10 on stablecoin issuance; PS26/11 on regulated activities, including safeguarding of client cryptoassets by custodians; PS26/12 on capital for crypto firms; and PS26/13 on which parts of the FCA Handbook, including the Consumer Duty, apply. UK-issued qualifying stablecoins will have to be fully backed and redeemable at par.
Existing firms that want to keep operating while their applications are assessed must apply in a window that opened on 30 September 2026 and closes on 28 February 2027. Our report on the FCA crypto authorisation window covers what that means for firms you may use. The FCA’s own framing is blunt: even in a well-functioning market, it says, most cryptoassets are highly speculative, and consumers could lose the entire value of their investment. The overview does not mention FSCS compensation for cryptoasset holdings.
Tax: the HMRC basics
HMRC does not consider cryptoassets to be currency or money (Cryptoassets Manual, CRYPTO10100). For individuals, the main charge is capital gains tax. HMRC’s guidance, updated on 5 October 2026, says a disposal includes selling tokens, exchanging them for a different cryptoasset, using them to pay for goods or services, and giving them away other than to a spouse, civil partner or charity. Moving tokens between your own wallets is not a disposal (CRYPTO22100).
- Pooling: each type of token goes into a pool with an average cost, except for tokens bought on the same day as a sale or within the following 30 days, which follow the share-matching rules.
- Allowance and rates: as at 9 October 2026 the annual exempt amount is £3,000, and gains from 6 April 2026 are taxed at 18% within the basic-rate band and 24% above it.
- Income: tokens received from mining, staking or lending, where you are not trading, are taxed as income, according to HMRC’s guidance on receiving cryptoassets. A £1,000 allowance covers trading and miscellaneous income; above £2,500 you must register for Self Assessment.
- Reporting: under the Cryptoasset Reporting Framework, UK crypto exchanges, brokers and dealers must collect data on their users and transactions, with first reports to HMRC due between 1 January and 31 May 2027 where required.
Gains on cETNs held inside an ISA or a registered pension are sheltered by those wrappers.
What protection does not apply
The FCA says most crypto-related activities are not yet regulated in the UK, and that if you make crypto-related investments you are unlikely to have access to the FSCS or the Financial Ombudsman Service if something goes wrong. FCA registration of a crypto business for anti-money laundering purposes does not change that. The FCA’s page on crypto investment scams adds that firms offering crypto products in the UK must be registered with it or have permission to promote them, but that registration does not mean you will have access to the FSCS or the ombudsman.
Even where the FSCS does apply, for example to a failed FCA-authorised platform, it does not cover losses from investments falling in value. Check any firm on the FCA register before you deal, and read our guides to spotting an investment scam and to crypto recovery scams, which target people who have already lost money.
