Cryptocurrency is not the unregulated "wild west" it once was. In the UK, several rules can apply to crypto-related business, and getting authorisation or registration wrong is a serious matter, potentially a criminal offence. Whether you need a "licence" depends on exactly what you do. Here is an overview for England and Wales, but this is a fast-moving area, so always check the current position and take specialist advice.
There is no single "crypto licence", it depends on the activity
The UK does not have one all-purpose crypto licence. Instead, different rules bite depending on the activity:
1. Anti-money-laundering registration (most crypto businesses)
Most cryptoasset businesses operating in the UK (such as exchanges and custodian wallet providers) must register with the Financial Conduct Authority (FCA) for anti-money-laundering supervision under the Money Laundering Regulations 2017. This is a registration focused on financial-crime controls, and operating without it where required is unlawful.
2. Regulated financial activities (FSMA)
Some crypto-related activities fall within the general financial regulation regime under the Financial Services and Markets Act 2000 (FSMA), for example, where a token or product amounts to a regulated investment (such as a security or a derivative), activities like advising, arranging or dealing may require FCA authorisation. Carrying on a regulated activity by way of business without authorisation breaches the general prohibition (FSMA, s 19) and is a criminal offence.
3. The financial promotion regime
Marketing matters too. The promotion of "qualifying cryptoassets" was brought into the UK financial promotion regime, so communicating crypto promotions to UK consumers must comply with strict rules (including being made or approved by an authorised person, with risk warnings and other requirements). Non-compliant promotions are an offence.
4. Evolving regulation
The UK is expanding its regulation of cryptoassets, with further rules being developed for activities such as trading, custody and stablecoins. What is unregulated today may be regulated tomorrow, so this is an area to monitor closely.
What this means in practice
- If you run an exchange or wallet service, expect to need FCA AML registration.
- If your product looks like a regulated investment, you may need FCA authorisation under FSMA.
- If you market crypto to UK consumers, comply with the financial promotion rules.
- Because the rules are changing, take specialist regulatory advice before launching.
Key takeaways
- There is no single crypto licence, obligations depend on the activity.
- Many crypto businesses need FCA AML registration (Money Laundering Regulations 2017).
- Some crypto activities need FCA authorisation under FSMA 2000; unauthorised regulated activity is a criminal offence.
- Crypto promotions to UK consumers are caught by the financial promotion regime.
Sources
- Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (cryptoasset business registration)
- Financial Services and Markets Act 2000 (general prohibition; regulated activities; financial promotion regime)
- FCA guidance on cryptoassets and the financial promotion of qualifying cryptoassets
--- This article is general information about the law of England & Wales as at 2026, not legal advice. Crypto regulation is changing rapidly, for advice on your circumstances, consult a qualified financial-services solicitor.