UK FCA Issues Draft Rules for Crypto Advertisers

Let’s talk real: if you’re a marketing or advertising pro working with crypto, here’s what just happened—and why it matters to you. The UK’s Financial Conduct Authority (FCA) isn’t messing around. As part of its long-planned roadmap, the FCA has released draft rules targeting how crypto is advertised—from display ads and influencers to social media promos. These aren’t suggestions; they’re poised to carry the force of law once new legislation passes and enters force. At the same time, the Treasury has rolled out draft legislation designed to extend the FCA’s remit beyond just platforms and exchanges—bringing crypto actors, product issuers, lenders, stablecoins, staking, and custody services fully under financial promotion regulations. In essence, crypto is now officially in the FCA’s jurisdiction. The draft rules specify what compliant crypto advertising must include: prominent risk warnings, with a caveat about the real possibility of losing all invested money; a ban on incentives—that means no shiny bonuses or “refer-a-friend” deals; mandatory cooling-off periods and “positive friction” during onboarding; strict customer categorisation and appropriateness tests before allowing a retail investor to see an ad. This shift is massive—not incremental. For marketing teams, it’s a full-blown compliance overhaul. Fact: under previous rules, over 1,700 illegal crypto adverts were flagged—but as of late 2024, nearly half were still live online. Now, every piece of crypto ad content—from ad copy to influencer posts to landing pages—must pass an internal compliance gate, with a risk-first mindset baked in from day zero. If you’re planning new crypto campaigns for the UK, this isn’t a suggestion. It’s your roadmap to safe, approved, and effective marketing in a newly regulated space.

Regulatory Context

Expansion of FCA’s Financial Promotion Regime

Back in October 2023, the FCA extended its financial promotion rules to explicitly cover crypto. That meant every ad—even a tweet or influencer post—had to be pre-approved by an FCA-authorised firm. If not, it was illegal. Yet, a lot slipped through: between October 2023 and October 2024, the FCA flagged 1,702 illegal ads—but only half actually vanished. The rest? Still live, still misleading people. Why does this matter to you? Because any crypto-related marketing now requires that green light. Your campaign assets—whether display, social, or search ads—must be vetted and approved ahead of launch. No more surprise promotions.

Role of HM Treasury Draft Legislation

Then comes the legislative backbone. In April and June 2025, HM Treasury dropped draft regulations extending FCA oversight to previously unregulated areas: stablecoins, staking platforms, crypto lenders, custodian services and custody providers. This aligns crypto with other financial products, bringing them under FSMA rules. So if your campaign involves stablecoin yield, staking returns, or custody services—expect new compliance burdens coming soon. The Treasury’s consultation is open, and the draft law aims to come into force later in 2025. Once enacted, the FCA’s financial promotion regime will apply seamlessly across crypto service categories, not just tokens or exchanges.

Key Draft Rules Affecting Crypto Advertisers

Clear, Fair & Not Misleading Promotions

Under Policy Statement PS 23/6, qualifying cryptoassets are classed as “restricted mass market investments.” This means all promotions must be transparent, balanced, and honest. Risk summaries and warnings must be prominent and unambiguous, like: “Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment…” These statements can be modified if you have a solid rationale, well-documented. But don’t bury them in small text or after flashy claims. Printed materials, digital ads, landing pages—all must meet this standard. Any omission or misleading tone becomes a violation.

Ban on Incentives & Credit-Driven Ads

The FCA’s ban on incentives is clear: no bonuses, no referral programs, no free coins to lure investors. PS 23/6 removes even the carve-out for issuer-funded perks. Additionally, marketing involving credit—like buy-on-credit promotions—faces strict scrutiny. Ads referencing credit-fueled investment are likely prohibited. If your campaign promises discounted loans or easy credit for crypto purchases, it’s non-compliant.

Cooling-Off Period & Positive Friction

Here’s a major change: new crypto users must wait 24 hours before they can proceed—no exceptions. This “cooling-off” applies only on first-time sign-ups with your firm, even if they’re seasoned investors elsewhere. Also, a personalised risk-warning pop-up must hit first, something like: “Sarah, this is a high-risk investment. How would you feel if you lost the money you’re about to invest? Take 2 min to learn more.” Purpose? To slow impulsive buying and reinforce informed decisions.

Client Categorisation & Appropriateness Assessments

Advertisements must now be targeted only at investors deemed “restricted,” “high net worth,” or “certified sophisticated.” That means before pushing a crypto ad, firms must conduct a categorisation test with declarations valid for 12 months. But it doesn’t stop there. Every promotion must pass an appropriateness assessment—you need to confirm the customer understands crypto-specific risks. That likely means quizzes about volatility, custody risks, and the nature of assets being promoted. Fail either, and no ad—no push notifications, no email, no targeted social posts.

Product-Specific Rules: Stablecoins, Lending & Staking

Two specific areas get granular breakdowns: stablecoins: ads must explain redemption rights, show proof of fiat backing, and disclose custodial arrangements; lending/staking/yield products: promotions must detail how returns work, highlight fees, explain default risks, and clarify legal ownership. These aren’t negotiable. If you’re marketing yield-bearing products, your campaign must include precise disclosures vetted by compliance and legal teams.

Record-Keeping & Approval Requirements

Every promotion must be documented and approved by an FCA-authorised firm. That means keeping records of categories, appropriateness tests, risk pop-ups, and 24-hour waits. Approving parties must be trained sufficiently and competent to verify each campaign element aligns with COBS 4.12A principles.

Implications for Ad Campaign Planning

Campaign Structure & Messaging

You need a risk-first narrative. Every campaign must lead with risk, not bury it: headlines & taglines should balance opportunity with reality: “High-risk crypto trading—losses possible.” Landing pages require prominent risk warnings near CTAs. Ad creatives aren’t just images—they must visually reinforce the risk, using icons or overlays. Avoid hype language like “guaranteed gains.” Instead, offer clear, factual descriptions with disclaimers built into visuals, not footnotes.

Audience Targeting & Segmentation

This is no broader broadcast opportunity—you’re playing in a segmented sandbox: define audience segments clearly: restricted investors, HNWs, certified sophisticates. Gate ads by completing categorisation quizzes—e.g., “I understand crypto risks,” refreshed every 12 months. Push high-risk communications only to qualified segments. If the quiz fails, block the campaign. You’re essentially building a regulatory firewall around your targeting—no mass-market unqualified reach.

Channel Choice & Creative Adaptation

These rules apply anywhere your ads appear: social platforms: finfluencer posts need short caption-first risk formats. Display & search: inject risk into headlines, descriptions, and extensions. Influencer partnerships: scripts pre-approved, disclosures upfront. Think platform-first: a banner or TikTok clip needs risk clarity just as much as a landing page.

Creative Execution & Compliance Integration

Compliance isn’t a checklist. It’s workflow DNA: set up approval gates—legal/compliance reviews before content touches the wild; use templates that embed warnings and disclosures; assign compliance owners to sign off each asset. This is non-negotiable. The FCA expects trained approvers; sloppy gets live illegal ads, billions in flags, and enforcement actions.

Documentation & Traceability

Every campaign step must be traceable: save categorisation quiz results, with timestamps; log approval decisions (who approved what, when); archive creative drafts with embedded risk elements; flag 24-hour cooldown triggers, and require proof of expiry before conversion. Legal teams will ask for evidence—make sure your system can tell the full compliance story.

Monitoring & Post-Launch Compliance

Your job isn’t done at launch—it’s just beginning: scan regularly: use keywords and campaign tags to ensure no rogue ads appear; if violations pop up, take down immediately and record actions (platform, time, asset); monitor FCA alerts continuously—respond fast to emerging trends and enforcement. Brands that move quicker and cleaner earn trust—and avoid reputational damage.

Client Advisory & Strategic Positioning

Positioning Compliance as Competitive Advantage

Most firms see regulation as a hurdle. You see opportunity. Advisors who embed risk transparency and consumer protection into messaging don’t just stay safe—they earn credibility: pitch compliance to clients as brand integrity—clearly labelled risk warnings and transparent targeting show audiences you care about their financial safety; when UK regulations ease access—like the lifting of the ban on retail crypto ETNs—it will be the most compliant brands that gain market trust first. Emphasize how informed, regulation-based brands will win when crypto becomes mainstream.

Developing Client-Centric Advisory Frameworks

Your advice must be structured, evidence-based, and client-specific: regulatory audit – map existing campaigns to FCA requirements. Identify gaps in risk messaging, disclosure, targeting, or approvals; gap remediation – provide tailored recommendations: create risk-first templates; define audience access controls; build cooldown-pop-up sequences; ad strategy integration – help strategize messaging that blends promotion with risk governance; ongoing reporting – monthly compliance reviews, especially around new formats (e.g. influencer scripts, push campaigns, stablecoin materials). This iterative, structured advisory ensures regulatory changes never blindside campaigns.

Scenario Planning for Regulatory Shifts

Regulation is evolving. Help clients stay ahead: prepare for retail ETN rollouts: frame campaigns around clear disclosures and consumer suitability; model additional constraints once stablecoin and lending promotions are fully regulated—tie in disclaimers, redemption features, and custody details early. This proactive planning builds client confidence and avoids reactive scrambles when new rules drop.

Messaging That Connects and Protects

Clients want balance: highlight innovation without reckless promise: use storytelling: “Finance meets responsibility” sections featuring risk-awareness; include risk governance in case studies—sharing how 24-hour deferral reduced complaints by X%; for influencers: script transparent disclosures first, avoiding jargon, and make compliance part of the influencer brand image. Compliance isn’t a check-box—it’s a core narrative thread that resonates with regulators and consumers.

Educating Stakeholders and Internal Teams

Ensure your clients champion compliance internally: conduct workshops on rules: risk messaging, targeting boundaries, approvals process; provide visual guides or banners they can drop into Slack/Teams channels for awareness; keep them updated with monthly newsletters covering new FCA alerts and sector data—for example, FCA’s August 2024 review highlighted widespread failures in appropriateness assessments. Educated internal teams minimize compliance slip-ups and multiply your strategic influence.

Differentiating Through Ethical Leadership

In a crowded market, clients that lead with responsibility stand out. Frame campaigns so: a client highlights the legal safeguard: “Regulated, risk-ready, client-first”; this approach protects reputation and positions the firm as a guardian voice in post-scam fatigue; encourage them to share their compliance journey—for example, “we introduced 24-hour cooling-off on launch day” stories. Let compliance be part of brand identity—not a burden.

Compliance & Risk Management Workflow

Pre-Promotion Compliance Gate

Step 1: Concept Registration – at ideation, log every campaign in a central dashboard; note format, target segment, asset type (stablecoin, staking, tokens). Step 2: Compliance Briefing – provide compliance/legal teams with campaign objectives, risk statements, and draft creatives; request sign-off on the risk narrative—warnings, disclaimers, visuals. Step 3: Categorisation & Appropriateness – launch targeting only after users complete categorisation tests; archive quiz results and ensure appropriateness is confirmed before ad delivery. Step 4: Cooldown & Friction Design – embed personal-risk pop-ups at first engagement; ensure system enforces a 24-hour delay before the first transaction for every new user. Step 5: Documentation – keep all sign-offs, quizzes, timestamps, and pop-up interactions securely logged to create a full audit trail.

Post-Launch Monitoring & Incident Protocols

Daily Monitoring – use keyword-based monitoring (e.g., “crypto”, “earn”, “invest”) to track live ads; tag flagged content—check internal logs for missing quiz or disclaimer. Rapid-Takedown Process – if non-compliance is detected, immediately remove the ad from all platforms; document: asset details, platform, removal time, reason. Save screenshots as proof. Reporting & Review – weekly snapshots to compliance leadership on takedowns and results; trend analysis: are certain channels or teams more prone to issues? Adjust as needed.

Internal Training & Role-Based Accountability

Structured Training – quarterly sessions: cover PS23/6, pop-up design, disclosure tone, quiz dynamics; include scenario-based drills—what’s compliant vs not? Role Definitions – campaign owners handle categorisation and pop-up setup; compliance leads approve risk language, categorisation, asset reviews; ops/admins handle trackers, pop-up logs, data retention. This ensures clarity and accountability—no slipping into blind spots.

FCA Dialogue & Proactive Enhancement

The FCA has been assessing enforcement and sees room for improvement. They recently reviewed firm compliance and flagged cooling-off and messaging gaps. Proactive measures: reach out to FCA guidance or attend feedback consultations; review published “Good & Bad” practices—they offer clear examples of failures to learn from.

Continuous Improvement

Treat compliance as an evolving program: add new campaign formats (e.g., influencer posts, stablecoin yield) to your review checklist; review monthly: are disclaimers recognizable? Are pop-ups working? Track “cooldown leak” metrics; update your process with every rule shift—the FCA’s roadmap shows it’s not static.

Timeline & Next Key Dates

Call to Action

Here’s the truth: the FCA isn’t just nudging the crypto market—it’s detouring it. As the new rules unfold, they reshape the entire advertising landscape for crypto in the UK. For marketing and ad pros, the path forward isn’t optional—it’s essential. The FCA’s guidance states clearly: these rules are aligned with broader financial promotions regulations, aiming to give people a better understanding of what they are investing in, and the risks involved. That means compliance isn’t just a checkbox—it’s a consumer-first philosophy. The FCA has begun proactive monitoring, issuing alerts and placing non-compliant firms on its Warning List—criminal penalties and fines are on the table. Your Roadmap to Compliant Crypto Marketing: Audit Now – review all ad assets, from copy to creatives, landing pages to influencer scripts; rebuild processes – integrate categorisation quizzes, 24-hour cooling-off, and risk messaging into campaign setups; train your team – run regular workshops to bake compliance into creative thinking, not just asset review; activate monitoring – use daily scans to detect rogue ads. Be prepared to take them down instantly; document everything – keep proof of quizzes, approvals, pop-up interactions, and takedowns. By leading with compliance, you gain more than legal safety—you build trust. As the FCA continues to ramp up enforcement, with banned ads persisting online, being the firm that publishes responsible, risk-aware campaigns will elevate your brand and stand you apart. Let’s get to work: schedule an internal compliance audit meeting this week; begin rewriting ads to front-load risk warnings; build your first categorisation quiz prototype; prepare to document and test your positive-friction pop-up. Want help designing these tools, training assets, or building your compliance dashboard? I’m here—let’s partner and make your next crypto campaign both powerful and principled.