Blockchain companies in the UK work under FCA registration today and a full FCA authorization regime from 25 October 2027. This guide explains the current rules, the new regime and its application window, the UK blockchain sector, and how to check a development firm before you hire it.
The current rules
FCA registration for anti-money-laundering
Since January 2020, a business that runs a cryptoasset exchange or a custodian wallet in the UK must register with the FCA under the Money Laundering Regulations. Most applications to the FCA were refused or withdrawn, usually because of weak anti-money-laundering controls, unclear ownership or weak governance. A Treasury answer in Parliament in June 2025 said that 51 firms had been registered and 49 held a current registration. Registration is not authorization, so a registered firm cannot carry on regulated investment activity. The FCA register of cryptoasset firms is public.
Financial promotion rules
Since 8 October 2023, the UK has treated cryptoassets as restricted mass market investments. An FCA-authorized firm must make or approve each promotion to UK consumers, or a registered cryptoasset business can make it under a specific exemption. Each promotion must meet detailed rules:
- a set risk warning, shown prominently;
- a 24-hour cooling-off period for a consumer's first investment with a firm;
- a check of the client's category and an appropriateness test before investment;
- no incentives to invest, such as refer-a-friend bonuses.
The promotion rules affect product design, not only legal documents. Onboarding screens, email sequences, app store text and influencer posts all count as promotions. The rules also cover overseas firms that market to UK consumers, and some foreign platforms restricted UK sign-ups in 2023 for that reason.
Security tokens and stablecoins
UK law treats security tokens as specified investments under the Financial Services and Markets Act (FSMA), with the same rules as their traditional versions. The Bank of England and the FCA opened a Digital Securities Sandbox in 2024. Firms in the sandbox test issuing, trading and settling securities on distributed ledgers. The government and regulators are also building rules for fiat-backed stablecoins, and the Bank of England is responsible for stablecoins large enough to be systemic.
The FCA regime from October 2027
The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 were made in February 2026. The Regulations bring cryptoasset trading platforms, dealing, custody, staking and stablecoin issuance under full FCA authorization, and they also add a market abuse regime for crypto. Key dates:
| Date | Event |
|---|---|
| 30 September 2026 | FCA application window opens |
| 28 February 2027 | Window closes; firms that apply by this date can keep operating while the FCA decides |
| 25 October 2027 | The new regime takes effect |
Current registrations do not turn into authorizations, so registered firms must apply too. A product built now should follow the coming conduct rules on operational resilience, segregation of client assets and disclosure, not only today's registration rules.
The Property (Digital Assets etc) Act 2025 followed work by the Law Commission. The Act confirms that crypto tokens can be personal property under English law, which matters for custody, insolvency and the use of tokens as collateral.
The UK blockchain sector
London's blockchain sector sits close to traditional finance: banks, asset managers, market infrastructure, payments firms and a large fintech industry. Many UK blockchain companies build institutional products such as tokenization, custody, compliance tools and payments. Consumer trading products face more work because of the promotion rules.
Some UK firms show what the regulated side of the sector looks like:
- Archax was the first digital securities exchange authorized by the FCA, in 2020.
- Zodia Custody, backed by Standard Chartered, registered with the FCA as a crypto custodian in 2021.
- Elliptic, based in London, sells blockchain analytics for anti-money-laundering checks.
Engineers work mostly in London, with groups in Cambridge, Edinburgh, Manchester and Bristol. Imperial, UCL, Cambridge and Edinburgh produce researchers in cryptography and distributed systems. Experienced UK engineers cost less than US engineers and more than engineers in most of the EU. Hiring from abroad needs a Skilled Worker or Global Talent visa, which adds time and duties for the employer as a visa sponsor. UK research and development tax relief now runs as one merged scheme and can cover part of eligible development costs. Check the current rules of the scheme with an adviser.
How to vet a blockchain development company in the UK
A UK-based firm is worth its higher rate when the product touches the promotion rules or FCA processes. The costly mistakes happen in onboarding screens, risk warnings and record keeping, not in smart contract syntax. For back-end, protocol and contract work, many teams hire in Europe or Asia, which works when someone in the UK owns the compliance requirements.
Questions to ask
- Have you built a UK consumer flow that passed a compliance review under the October 2023 rules, with risk warnings, cooling-off and appropriateness tests?
- Can your system keep the records the FCA expects, such as a log of which promotions each user saw?
- How do you handle UK GDPR for on-chain data, given that a public ledger cannot delete personal data?
- Does your custody design keep client assets separate, as the coming rules require?
- If you say you are FCA-registered or authorized, which entry on the FCA register is yours?
Related guides: exchange marketing covers growth for trading platforms, STO marketing covers promotions for securities, and wallet development covers custody design. The Switzerland guide describes a nearby market, and the regional guide compares nine.
Frequently asked questions
Does a non-custodial wallet need FCA registration?
Registration under the Money Laundering Regulations targets exchanges and custodian wallet providers. Self-custody software is generally outside it. Marketing that invites UK consumers to buy cryptoassets can still be a financial promotion, so get advice on your specific screens.
Can we offer referral bonuses to UK users?
No, not as an incentive to invest in cryptoassets. Many firms removed referral schemes for UK users in 2023.
How do I check whether a UK blockchain company is regulated?
Search the FCA register for the firm's name. The entry shows whether the firm is registered for cryptoasset activity, authorized for other activities, or both.
When does the new UK crypto regime apply?
The regime applies from 25 October 2027. Existing registrations do not carry over, so firms must apply in the FCA window, which closes on 28 February 2027.