FSMA 2000 s21. FPO 2005. COBS 4.12A

FCA crypto registration requirements and the promotion rules

Since 8 October 2023 a qualifying cryptoasset has been a controlled investment, so promoting one to UK consumers engages the section 21 restriction. There are exactly four lawful routes. Using none of them is a criminal offence carrying up to two years' imprisonment, an unlimited fine, or both. Answer the questions below to find which route you are on.

Question 1

What are you communicating?

Section 21(1) FSMA bites on an invitation or inducement to engage in investment activity, communicated in the course of business.

What it does and does not check

The section 21 FSMA restriction on financial promotions and its territorial reach
Whether what you are marketing is a qualifying cryptoasset under the Financial Promotion Order
The four routes: authorised firm, section 21 approver, article 73ZA registered business, other FPO exemption
Which FPO exemptions are and are not available for cryptoassets
The COBS 4.12A restricted mass market investment rules that follow once a route is open
England, Wales, Scotland and Northern Ireland. Position as at the updated date above

FSMA Crypto Promotions Checker is an independent information site operated by Ellul Solutions Ltd. It is not affiliated with, authorised by or endorsed by the Financial Conduct Authority, HM Treasury or any government body, and nothing here is legal or regulatory advice. Breaching section 21 of FSMA 2000 is a criminal offence, and the position turns on facts a checker cannot see, take advice from a regulatory lawyer or compliance consultant before you communicate a promotion.

The four lawful routes for a UK cryptoasset financial promotion

Last updated 2026-08-15

Every cryptoasset promotion capable of having an effect in the UK must sit on one of these four routes, or it contravenes section 21 FSMA. The rules that follow are the same on the first three: qualifying cryptoassets are restricted mass market investments, so COBS 4.12A applies.

Mapped from section 21 of FSMA 2000, section 55NA and section 25; articles 2 and 73ZA and Schedule 1 paragraph 26F of the Financial Promotion Order 2005; the FCA's cryptoasset marketing guidance; and FCA Policy Statement PS23/6 paragraphs 1.15 to 1.18. Position as at the updated date above.

The four lawful routes for a UK cryptoasset financial promotion
Route	Who it is for	Legal basis	What it requires	FCA promotion rules apply?
1. Authorised firm communicates	Firms with a Part 4A permission under FSMA	s21(2)(a) FSMA	Nothing extra to unlock the route; the permission is the route	Yes, COBS 4 and COBS 4.12A in full
2. Approved by a section 21 approver	Unauthorised persons of any kind	s21(2)(b) and s21(2A), s55NA FSMA	An authorised firm holding FCA approver permission must approve the content	Yes, the approver must be satisfied they are met on each communication
3. Registered cryptoasset business	MLR-registered exchange and custodian wallet providers that are not authorised	Article 73ZA, Financial Promotion Order 2005	FCA MLR registration; if communicated on your behalf, non-real time and content prepared by you	Yes, FCA financial promotion rules are applied to registered persons
4. Another FPO exemption	Anyone whose communication meets an exemption's conditions	Financial Promotion Order 2005, various articles	Every condition of the specific exemption, evidenced per communication	Depends on the exemption; several disapply the FCA rules
None of the four	Nobody lawfully	Contravenes s21(1) FSMA	Not available	Criminal offence under s25: up to 2 years on indictment, a fine, or both

Since 8 October 2023 a qualifying cryptoasset has been a controlled investment for financial promotion purposes, so promoting one to UK consumers engages section 21 of FSMA 2000.
Contravening section 21(1) is a criminal offence: up to six months' imprisonment or a fine not exceeding the statutory maximum on summary conviction, and up to two years' imprisonment or a fine, or both, on indictment.
The FCA states that the article 48 certified high net worth and article 50A self-certified sophisticated investor exemptions do not apply to cryptoasset promotions, and articles 51 and 61 were expressly disapplied.

Cite this page

“The four lawful routes for a UK cryptoasset financial promotion”, FSMA Crypto Promotions Checker, https://fsmacrypto.co.uk/ (updated 2026-08-15). Mapped from section 21 of FSMA 2000, section 55NA and section 25; articles 2 and 73ZA and Schedule 1 paragraph 26F of the Financial Promotion Order 2005; the FCA's cryptoasset marketing guidance; and FCA Policy Statement PS23/6 paragraphs 1.15 to 1.18. Position as at the updated date above.

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Straight answers

What are the four routes for a UK cryptoasset financial promotion?

The promotion is communicated by an FCA authorised firm; or made by an unauthorised person but approved by an authorised firm holding section 21 approver permission; or communicated by, or on behalf of, a cryptoasset business registered with the FCA under the Money Laundering Regulations in reliance on article 73ZA of the Financial Promotion Order; or it otherwise meets the conditions of an FPO exemption.

What is the penalty for breaching the crypto financial promotions rules?

Contravening section 21(1) FSMA is a criminal offence. Section 25 provides for up to six months' imprisonment or a fine not exceeding the statutory maximum on summary conviction, and up to two years' imprisonment or a fine, or both, on conviction on indictment.

What counts as a qualifying cryptoasset?

Under paragraph 26F of Schedule 1 to the Financial Promotion Order, any cryptoasset that is fungible and transferable, excluding anything already a controlled investment, electronic money, fiat currency, digitally issued fiat currency, and certain closed-loop tokens. A cryptoasset is treated as transferable if a communication about it describes it that way.

Do the rules apply to influencers and affiliates?

Yes, where they communicate in the course of business, which includes being paid, rewarded or given tokens. Article 73ZA covers a communication on behalf of a registered cryptoasset business only if it is non-real time and the registered business prepared the content, so a livestream or an influencer's own words fall outside it.

Does an e-money or payments licence let us promote crypto?

No. The FCA states in PS23/6 paragraph 1.16 that a firm authorised only under the Electronic Money Regulations or the Payment Services Regulations is not an authorised person for financial promotion purposes, so it can neither communicate nor approve promotions. The FCA adds that this is set in legislation and cannot be modified by FCA rules.

How long must we wait before showing a crypto investment page?

At least 24 hours from the retail client's request to receive a direct offer financial promotion, under COBS 4.12A.18R, and then only if the client confirms they wish to continue when offered the choice to leave with equal prominence.

Sources

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