Key takeaways
- Cryptoassets have been under the UK financial promotions regime since 8 October 2023, so promotions are the main area enforced before the full regime starts on 25 October 2027.
- Section 21 of FSMA prohibits unapproved financial promotions in the course of business, and breach is a criminal offence.
- The FCA announced its first enforcement action against an offshore crypto platform on 10 February 2026.
- Overseas influencers and exchanges can be caught if a communication can have an effect in the UK, so take UK advice before targeting UK audiences.
Until the UK’s full cryptoasset regime starts on 25 October 2027, the FCA’s reach over crypto is mostly through financial promotions and anti-money laundering. That makes promotions the area being enforced now. The UK crypto financial promotion rules influencers need to understand apply to anyone who markets crypto to UK audiences, including an Indian creator with UK followers and an Indian exchange that pays them.
This guide explains the UK crypto financial promotion rules influencers face: what counts as a promotion, who is liable, what the rules require, recent FCA enforcement, how territory works for overseas marketers and what Indian influencers and exchanges should do. UK regulatory points must be confirmed with UK advisers, because Halverton & Co. is an Indian law firm and does not advise on UK law.
What counts as a crypto financial promotion
A financial promotion is a communication that invites or induces a person to engage in investment activity. Since 8 October 2023, the financial promotions regime has covered qualifying cryptoassets, so a post, video, story, newsletter, advert or website that encourages UK consumers to buy, trade or stake crypto can be a promotion. The format does not matter. A short social media post can be as regulated as a brochure.
The test is about effect, not about whether the promoter calls the content education or opinion. Content that praises a platform, shows how to sign up or offers a referral link is likely to be treated as encouragement. Purely neutral news or general education is different, but the line is fine, and the FCA’s guidance on social media promotions, published in March 2024, says that all financial promotions must be fair, clear and not misleading.
The practical lesson of the UK crypto financial promotion rules influencers must follow is that paid or incentivised content aimed at the UK is high risk. Commercial relationships, including affiliate links, free tokens and revenue shares, make it more likely that the content is a promotion made in the course of business.
Who is liable: influencer, firm and approver
Section 21 of the Financial Services and Markets Act 2000 prohibits communicating an invitation or inducement to engage in investment activity in the course of business unless the communicator is authorised, the content is approved by an authorised person, or an exemption applies. Breach is a criminal offence, which can carry imprisonment of up to two years and a fine, and agreements entered into as a result can be unenforceable, with the consumer entitled to compensation.
Several parties can be exposed. The influencer who communicates the promotion can be liable, particularly if paid. The exchange or token issuer that commissions or benefits from it can be liable as a communicator or as someone who caused it. An authorised firm that approves the promotion takes regulatory responsibility for it. Agencies that create or place promotions can also be involved.
| Party | How they are exposed |
|---|---|
| Influencer | Communicating the promotion, particularly if paid |
| Exchange or token issuer | Commissioning or benefiting from the promotion |
| Authorised approver | Takes regulatory responsibility for approving it |
| Agency | Creating or placing promotions for others |
For Indian businesses, the practical reading of the UK crypto financial promotion rules influencers must follow is that using an influencer does not move responsibility away from the firm. A firm that pays creators to reach UK audiences is itself exposed, and contracts should say so plainly.
Contracts between exchanges and influencers need specific clauses. Require the creator to use only approved wording, to include the required risk warning in the content itself, to disclose the commercial relationship, to avoid UK targeting unless approved, and to remove content within a short period on request. Add audit rights over content and payments, and a termination right for breach. An exchange that cannot show control over its creators will struggle to say that a promotion was not its own.
What the rules require
The detailed crypto promotion rules in the FCA’s Handbook require a prominent risk warning, clear and balanced content, and for first-time investors, a cooling-off period, an appropriateness assessment and a ban on direct incentives such as refer-a-friend bonuses. The FCA has said that the risk warning must be prominent and that promotions must not be disguised as something else. Check the current text of the Conduct of Business Sourcebook rules on cryptoasset promotions for the exact requirements.
Promotions must be approved by an authorised person or fit an exemption, such as the one for promotions by registered cryptoasset businesses under the money laundering regulations, which carries its own conditions. A promotion that relies on an exemption must meet its conditions precisely.
Social media adds practical rules: disclose commercial relationships clearly, avoid pressure tactics and make sure that disclaimers are in the content itself, not hidden in a bio. The UK crypto financial promotion rules influencers must follow also interact with the Advertising Standards Authority’s CAP Code, which polices misleading ads and influencer disclosures across media.
Recent FCA enforcement and overseas reach
The FCA is using these powers. On 10 February 2026, it announced that it had started proceedings against an offshore crypto platform for breaching the financial promotions regime for cryptoassets, seeking a declaration that the platform breached Section 21(1) of FSMA. In its wider finfluencer campaign, reports say the FCA has interviewed 20 finfluencers under caution and issued 38 alerts, and in February 2026 seven people were sentenced at Southwark Crown Court over promotions of an unauthorised foreign exchange scheme. The sentencing case concerned forex, not crypto, but it shows the approach.
Territory is the point that surprises overseas marketers. A communication made from outside the UK can be caught if it is capable of having an effect in the UK, unless an exclusion applies. A website in English with UK payment methods, content aimed at British audiences or a UK-focused campaign all increase risk. A line saying that the content is not for UK residents helps only if the targeting and access controls match it.
The FCA can issue alerts, ask platforms to remove content, bring civil proceedings and prosecute offences. It has also stated that it will use its powers against overseas firms. An Indian influencer or exchange should not assume that being based in India places them out of reach, particularly where UK followers, UK sponsors or UK banking links exist.
Monitoring matters as much as drafting. Check creator channels regularly, keep archived copies of every promotion and respond to warnings or alerts from the FCA or platforms quickly. If content is found to be non-compliant, remove it, record the reason and fix the process. A fast, documented response is the best evidence that the UK crypto financial promotion rules influencers are subject to were taken seriously.
What Indian influencers and exchanges should do
Decide whether you intend to reach UK audiences at all. If not, use real controls: geo-restrict content where platform tools allow, exclude UK targeting in paid campaigns, avoid UK-specific language and payment methods and say clearly that the offer is not for UK residents. If you do want UK audiences, work through an FCA-authorised firm that can approve promotions, and follow its process. Exchanges should write contracts with influencers that require compliance, give the exchange approval and takedown rights, ban incentives the rules prohibit and require records. Keep copies of all content and approvals. Influencers should ask for written confirmation that a promotion is approved and should not publish crypto content for pay without understanding where the audience is. Indian law matters too: the Consumer Protection Act and ASCI rules govern endorsements, SEBI rules restrict unregistered advice on securities, and FIU-IND registration may be needed for platforms serving Indian users. If the FCA contacts you, take UK advice before responding. Following the UK crypto financial promotion rules influencers face is cheaper than defending an offence.
Related reading: FCA crypto authorisation: what Indian firms must do, how the UK crypto regime reaches Indian Web3 startups, the FCA DeFi consultation for Indian protocol developers, FIU-IND registration for crypto businesses, UK crypto exchanges serving Indian users and FIU-IND, ads inside AI answers: India advertising law and crypto tax in India vs the UK.
Quick answers
Can an Indian influencer be liable under UK crypto promotion rules?
Potentially. A promotion communicated from outside the UK can be caught if it is capable of having an effect in the UK. Paid or incentivised content aimed at UK audiences carries the highest risk, so take UK advice.
What does Section 21 of FSMA do?
It prohibits communicating financial promotions in the course of business unless the communicator is authorised, the promotion is approved by an authorised person or an exemption applies. Breach is a criminal offence and can make resulting agreements unenforceable.
Does a disclaimer saying not for UK residents protect me?
Not by itself. It helps only if your targeting, language, payment methods and access controls are consistent with it. Take UK advice if your content reaches UK audiences.
When did the crypto promotions regime start?
Cryptoassets have been under the UK financial promotions regime since 8 October 2023, and the FCA published guidance on social media promotions in March 2024. The wider regime starts on 25 October 2027.
What penalty can follow?
Section 21 breaches are criminal offences under FSMA, with imprisonment of up to two years and a fine possible, and resulting agreements can be unenforceable. Confirm current penalties with UK advisers.
Final word
Halverton & Co. is an Indian law firm advising UK companies, founders, investors and law firms on Indian law, including FIU-IND registration, influencer and endorsement compliance, and Indian-law advice for crypto businesses marketing to overseas audiences. We practise in Jharkhand, Maharashtra and before the Supreme Court of India, and work alongside your UK solicitors, who advise on English law. Halverton & Co.: Where tech needs law! If you have a question about Indian law, write to us at office@halvertonandco.com, or get in touch.
This article reflects developments reported up to late October 2026. It is for general information only, is not legal advice, and does not create a solicitor-client relationship. Halverton & Co. is an Indian law firm, is not authorised or regulated by the Solicitors Regulation Authority, and does not advise on English law; UK-law points should be confirmed with UK advisers.
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