In a landmark move, the Financial Conduct Authority has launched its first enforcement action against an offshore cryptoasset exchange for breaching the UK’s financial promotion regime, signalling a tougher stance on firms targeting UK consumers from abroad. In this analysis for IFA Magazine readers, Eve Jenkins and Rhiannon Price of Burges Salmon LLP, a leading UK law firm, examine the implications for crypto firms and what this means for compliance going forward.
The Financial Conduct Authority (FCA) has launched its first enforcement action against an offshore cryptoasset exchange provider for unlawfully promoting crypto services to UK consumers. This case is one of a number of active FCA enforcement cases about which you can read more here.
A new regime for cryptoasset promotions
Since 8 October 2023, firms offering or promoting cryptoasset products to UK consumers have been required to comply with the UK’s financial promotion regime. The rules are designed to ensure that marketing is fair, clear and not misleading, and to protect consumers from the heightened risks associated with cryptoassets. Financial promotion of qualifying cryptoassets in the UK in breach of the financial promotion regime is a criminal offence.
Ahead of the new regime coming into force, the FCA sought to engage with firms operating cryptoasset exchanges that were capable of reaching UK consumers, including the offshore cryptoasset exchange provider.
The FCA has taken action
The FCA’s case against the exchange provider in question is that, following the regime coming into force, it failed to engage meaningfully with the FCA and continued to promote cryptoasset services capable of having an effect in the UK in breach of the financial promotion regime.
The FCA alleges that the exchange provider has continued to publish financial promotions on its website and on social media platforms. Further, its website is accessible to UK consumers, and there are no apparent blocks or controls to prevent UK consumers from viewing or acting on its promotions. The exchange provider has been placed on the FCA Warning List of unauthorised firms.
What is the FCA seeking?
The FCA is seeking a declaration that the exchange provider has breached section 21(1) of the Financial Services and Markets Act 2000 by unlawfully communicating financial promotions. It is also applying for injunctive relief to restrain the exchange provider from communicating financial promotions to prevent future breaches.
Since issuing the proceedings on 21 October 2025, the exchange provider has taken steps to restrict new UK customers from registering an account. However, the FCA is concerned that existing UK users can still access unlawful financial promotions and has been given no assurance that the changes will be permanent.
A clear warning to offshore cryptoasset firms
This action sends a clear message that offshore cryptoasset firms are not beyond the reach of UK regulation where their activities are capable of affecting UK consumers. The FCA has made clear that it is prepared to take robust enforcement action to uphold the financial promotion regime, regardless of where a firm is based. You can read more about the FCA’s strategy to 2030 on fighting financial crime here.
For cryptoasset firms, the action underlines the importance of ensuring that any promotion of cryptoasset services to UK consumers complies with the UK’s financial promotion regime.
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