UK cryptoasset activities: registration, promotions and the coming FSMA perimeter

A UK-facing cryptoasset business can be inside the FCA's orbit without being authorised to carry on a FSMA-regulated activity. That single fact still produces more bad marketing lines than any other in this jurisdiction. RCA's UK file therefore splits the perimeter on purpose.

Layer one — MLR registration

Cryptoasset service providers carrying on exchange or custody activity in the UK have been within the Money Laundering Regulations registration regime for years. Registration is an AML gateway. It is not a conduct licence, not a capital regime, and not a product-approval process. Citing an MLR number as if it were a MiFID authorisation is a mis-statement of public evidence.

Layer two — financial promotions

From 8 October 2023, qualifying cryptoasset promotions to UK consumers fall inside the financial-promotions regime. The FCA's subsequent statements on common crypto-marketing failures—clarity, risk warnings, incentives, 'FCA regulated' claims—are primary evidence of supervisory expectations. Overseas websites, influencer campaigns and app-store listings are in scope when they are capable of having an effect in the UK.

Layer three — FSMA activities

HM Treasury's work on a future FSMA regime for cryptoasset activities is the third layer: issuing, trading, custody and related market functions brought inside the authorised-persons perimeter. Until commencement, RCA records this as consultation or legislative process—not as in-force law—and does not back-write authorisation onto firms that do not have it.