A foreign fintech promoting its app to UK users without an FCA-authorised sign-off isn't operating in a grey area — it's committing a criminal offence, regardless of where the company is based.
Why Foreign Platforms Keep Getting This Wrong
Since October 2023, financial promotions of qualifying cryptoassets to UK consumers must comply with the FCA's Financial Promotions regime — and critically, this applies regardless of whether the promoting firm is based in the UK, the US, or anywhere else. A US or Asian exchange with no UK office can still commit a UK criminal offence simply by marketing to UK users without the required approval chain.
The Core Requirement: An FCA-Authorised Approver
An unauthorised firm cannot communicate a financial promotion for cryptoassets to UK consumers unless the content has been approved by an FCA-authorised person specifically permitted to approve financial promotions, or the firm itself falls within a narrow exemption. This isn't a formality — a promotion approved by an unqualified or unauthorised party doesn't satisfy the requirement, and both the approver and the firm behind the promotion can face regulatory and criminal consequences.
What the Rules Actually Require
- Standardised risk warnings: every promotion must carry the FCA's mandated risk warning language — not a paraphrased or softened version.
- Ban on "refer a friend" style incentives: the regime specifically prohibits incentives designed to encourage new customers to invest, such as refer-a-friend bonuses tied to a first deposit or trade.
- A mandatory cooling-off period for first-time investors: new customers classified as "restricted" or "high net worth" investors under the regime must go through a specific onboarding journey including a 24-hour cooling-off period before they can complete their first investment — firms cannot rush a first-time UK customer straight from signup to deposit.
What This Means for You
If you're evaluating a crypto platform's legitimacy in the UK, the presence (or absence) of these specific elements — a proper risk warning, no refer-a-friend incentive on your first deposit, and an actual cooling-off period before you can invest — is a genuinely useful signal. A platform skipping the cooling-off period or pushing an immediate first-deposit bonus is either operating outside FCA rules or hasn't properly implemented them, either of which is worth treating as a red flag before you commit funds.
Use our Exchange Before Deposit Checklist to verify a platform's regulatory status before depositing.
Related Kibbo Tools
Sources
- Financial Conduct Authority — Cryptoasset financial promotions rules. fca.org.uk