Read our information for cryptoasset firms that are currently using the services of an FCA-authorised firm to approve their cryptoasset financial promotions.
Use of an s.21 approver
Cryptoasset firms that are not authorised under FSMA or registered with the FCA under The Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) (including overseas firms) may use FCA-authorised firms to approve their cryptoasset financial promotions (referred to as an s.21 approver) and communicate legally to UK consumers.
Our rules on cryptoassets marketing to UK customer consumers are explained in PS23/6 Financial promotion rules for cryptoassets and are supported by FG23/3 Finalised non-handbook guidance on cryptoasset financial promotions.
Cryptoasset firms that apply during the application period
Cryptoasset firms using an s.21 approver and applying for authorisation (or variation) during the application period may continue to use the s.21 approver until its application is determined (including during any period in the saving provision).
Cryptoasset firms that do not apply during the application period
Cryptoasset firms using an s.21 approver that don't apply during the application period (30 September 2026 to 28 February 2027), may continue to use the s.21 approver until the new cryptoasset regime commences.
At this point, if the firm’s application has not been determined, it will enter the transitional provision and only be permitted to communicate promotions to pre-existing contracts. These promotions will not require an s.21 approver.
Cryptoasset firms that do not apply before the new regime commences
Cryptoasset firms that rely on an s.21 approver and don't apply for authorisation (or variation) before the new regime, must run-off their UK cryptoasset business before the new regime commences.
Firms that fail to run-off their UK business ahead of commencement could risk conducting unauthorised business and breaching the general prohibition (s.19 FSMA) or, in the case of firms already authorised under FSMA, acting without permission (s.20 FSMA).
Firms promoting cryptoasset services where they don't have the required permissions may breach s.21 FSMA and FCA rules. s.21 approvers should not be approving financial promotions for anyone conducting regulated activity without the required permissions.
