Crypto regulation in the United Kingdom
What the FCA allows now, what changes in 2027, and how HMRC taxes your gains.
Crypto is legal in the UK. Today, crypto firms must register with the Financial Conduct Authority for anti-money-laundering purposes and follow strict rules on advertising. A full authorization regime is coming: the FCA published final rules on June 30, 2026, opened applications on September 30, 2026, and the regime starts on October 25, 2027. HMRC taxes most crypto gains as capital gains.
Last reviewed: November 2026. Facts on this page were checked against official sources on November 4, 2026.
the United Kingdom at a glance
| Owning crypto | Legal, including self-custody. |
|---|---|
| Buying and selling | Through FCA-registered firms. Retail investors can buy crypto ETNs since October 8, 2025. |
| Paying with crypto | Legal, not legal tender. |
| Exchange licensing | FCA anti-money-laundering registration now; full FCA authorization required from October 25, 2027. |
| Mining | Legal; mining rewards are taxable. |
| Tax | Capital gains tax at 18% or 24% above the £3,000 annual allowance; income tax on mining, staking and pay. |
| Stablecoins | FCA rules for issuing fiat-backed stablecoins finalized June 2026; Bank of England regime for systemic stablecoins. |
| Restrictions and bans | Retail ban on crypto derivatives since January 2021; strict financial promotion rules since October 2023. |
Owning crypto
Owning and holding crypto, including in your own wallet, is legal. The FCA's long-standing warning still applies: if you invest in crypto, be prepared to lose all your money, and the Financial Ombudsman and compensation scheme generally won't help with crypto losses.
Buying and selling
UK customers buy through exchanges and apps registered with the FCA under the money-laundering regulations (required since January 10, 2020). Registration checks anti-money-laundering controls only; it is not full consumer-protection authorization.
Since October 8, 2023, crypto ads to UK consumers must be fair, clear and not misleading and come from or be approved by an authorized firm; first-time investors face a 24-hour cooling-off period and an appropriateness test. On October 8, 2025 the FCA lifted its ban on retail investors buying crypto exchange-traded notes (cETNs) listed on recognized UK exchanges.
Paying with crypto
Crypto is not legal tender in the UK; businesses can accept it if they choose. Spending crypto can trigger capital gains tax.
Exchange licensing
Under the current system, firms register with the FCA for money-laundering supervision. The FCA has refused or seen withdrawn most applications it has received, and publishes a list of registered firms you can check.
The new regime, created by Treasury legislation and the FCA's policy statements PS26/9 to PS26/13 (June 30, 2026), will require full authorization for activities such as running a crypto trading platform, dealing, arranging, safeguarding (custody) and issuing a stablecoin, with rules on capital, conduct, market abuse and the admission of tokens to trading. Applications opened on September 30, 2026. Firms that apply by February 28, 2027 can keep operating while they are assessed; the regime takes effect on October 25, 2027.
Mining
Mining is legal. Rewards are usually taxed as income when received (or as trading income if run as a business), and later sales are subject to capital gains tax.
Tax
HM Revenue and Customs treats crypto as property. For most individuals, selling, swapping or spending crypto is a disposal for capital gains tax. Since October 30, 2024 the rates are 18% (within the basic-rate band) and 24% (above it), and the annual tax-free allowance is £3,000. Crypto received as pay, from mining or (often) from staking counts as income.
From January 1, 2026, UK crypto platforms collect customer details and transaction data for HMRC under the OECD's Crypto-Asset Reporting Framework (CARF), with the first reports due in 2027.
Stablecoins
The FCA's final rules for issuing fiat-backed stablecoins in the UK (PS26/10) set requirements for reserves and redemption. Stablecoins that become widely used for payments can be designated as systemic and supervised by the Bank of England. Until the regime starts, stablecoins are covered by the general crypto rules above.
Restrictions and bans
- Crypto derivatives such as futures and options cannot be sold to retail consumers (ban in force since January 6, 2021).
- Promotions must follow the financial promotions rules; unregistered overseas exchanges advertising to UK users break the law.
- Scams: the FCA's warning list names unregistered firms. See fake crypto trading sites.
What changed recently
Crypto firms must register with the FCA for anti-money-laundering supervision.
Retail ban on crypto derivatives takes effect.
Crypto financial promotion rules take effect.
Retail ban on crypto ETNs lifted.
Crypto-Asset Reporting Framework data collection begins.
FCA publishes final rules for the new crypto regime.
FCA application gateway opens; it closes February 28, 2027.
New regime takes effect.
- The new regime's start date is October 25, 2027. Until then, the current registration system applies.
- Details of the Bank of England's systemic stablecoin regime, including holding limits, were still being finalized.
This page summarizes the rules for general understanding. Laws change, and how they apply depends on your circumstances. For a decision that matters, check the official sources below or ask a qualified local adviser.
Frequently asked questions
Is crypto legal in the UK?
Yes. It's legal to buy, hold and sell. Firms must be registered with the FCA, and from October 25, 2027 they must be fully authorized.
How much tax do I pay on crypto in the UK?
Gains above the £3,000 annual allowance are taxed at 18% or 24% depending on your income. Crypto received as income is taxed as income.
Can UK retail investors buy crypto ETNs?
Yes, since October 8, 2025, if the ETN is listed on a recognized UK investment exchange. Crypto derivatives remain banned for retail customers.
When does the UK's new crypto regime start?
On October 25, 2027. The FCA opened applications on September 30, 2026.
Where to next
Sources
- Cryptoassets (Financial Conduct Authority)
- FCA publishes final rules for UK cryptoasset regime (Latham & Watkins, June 2026)
- Cryptoassets Manual (HM Revenue and Customs)
- Capital Gains Tax rates and allowances (GOV.UK)
- FCA warning list of unauthorised firms
Written for beginners and checked against the sources listed. Last reviewed November 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.