Registration, not authorisation
The distinction that trips people up in the UK is between FCA registration and FCA authorisation. Cryptoasset businesses must register with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations. That registration is for anti-money-laundering supervision. It is not authorisation to conduct regulated financial services, and it does not mean the FCA has approved the firm’s products or that consumers have access to the Financial Services Compensation Scheme in respect of cryptoasset holdings.
The FCA maintains a public register of firms that have registered, and has been explicit that many applicants have been refused or withdrawn. Checking the register is a verification a consumer can perform directly.
Financial promotions
Since October 2023, promotions of qualifying cryptoassets to UK consumers fall within the financial promotions regime. In practice that means risk warnings, a cooling-off period for first-time investors with a given firm, a ban on incentives such as refer-a-friend bonuses, and a requirement that promotions be made or approved by an authorised person. This is why the marketing behaviour of crypto services visible to UK consumers changed noticeably from that date.
Tax
HMRC’s published position is that cryptoassets are property rather than currency. For most individuals, disposals — selling, swapping one token for another, or spending — are subject to Capital Gains Tax against the annual exempt amount. Where activity looks like trading, or where tokens are received as income (employment, mining, staking rewards in some circumstances), Income Tax and National Insurance may apply instead.
HMRC publishes a Cryptoassets Manual setting out its view in detail. It is guidance rather than statute, but it is the authoritative statement of how HMRC will approach a return.
What is changing
The UK has been developing a broader regulatory regime for cryptoassets beyond AML registration, including proposals covering stablecoins and cryptoasset activities more generally. Because this area moves quickly, the FCA’s own publications are the reliable source for current status rather than any summary, including this one.
Sources
- Financial Conduct Authority, Cryptoassets: FCA registration and supervision (1 Jan 2026)
- HM Revenue & Customs, Cryptoassets Manual (1 Jan 2026)
Not legal or tax advice. This is a summary of published rules, not legal or tax advice. Rules change; check the primary sources linked above.
Last reviewed by Conisec Staff. Review cadence: Quarterly.