Crypto Investment Risk Assessment Tool
FCA Crypto Investment Risk Assessment
Based on UK FCA regulations (October 2023), this tool helps you determine if you meet the appropriate investor criteria for crypto investments. Remember: only those who understand the risks should invest.
Please complete the assessment form above to see your results.
Since October 8, 2023, the UK has enforced some of the strictest crypto advertising rules in the world. If you’ve seen a crypto ad on TV, social media, or a billboard lately, you might’ve noticed it’s gone. That’s not because the industry disappeared-it’s because the FCA shut the door on mass-market crypto promotions. This isn’t a suggestion. It’s the law.
What Changed in October 2023?
Before October 2023, anyone could run a crypto ad in the UK with a small disclaimer at the bottom. ‘Crypto is volatile,’ ‘Not financial advice,’ ‘Do your own research’-you’ve seen it all. But the Financial Conduct Authority (FCA) decided that wasn’t enough. Under the Financial Services and Markets Act 2000 (Amendment Order 2023), cryptoassets like Bitcoin, Ethereum, and even fan tokens were reclassified as Restricted Mass Market Investments. That meant ads targeting regular people now had to meet strict standards.The FCA didn’t just add more fine print. They rewrote the rules entirely. Now, every crypto ad must include a personalized risk warning tailored to the viewer’s experience level. It’s not a one-size-fits-all notice. If you’re a first-time investor, the warning has to be clearer, louder, and more detailed than if you’re a seasoned trader. The warning must take up at least 20% of the visual space in any ad-no sneaky small text.
The 24-Hour Cooling-Off Period
You can’t click ‘Buy Now’ right after seeing a crypto ad. The FCA requires a mandatory 24-hour cooling-off period. That means if you click on a link from a TikTok ad or a YouTube video, you can’t complete your purchase until at least one full day has passed. The system has to log your interaction, send you a confirmation email, and wait. No exceptions.This rule targets impulsive decisions. The FCA found that many people were rushing into crypto after seeing flashy ads with celebrities or promises of quick returns. The cooling-off period gives time to think, research, and possibly talk to someone who understands the risks. Firms must build technical systems to enforce this. If they don’t, they face fines up to 10% of their annual turnover.
Broadcast Ads Are Banned-Unless You’re on a Financial Channel
On October 3, 2024, the Broadcast Committee of Advertising Practice (BCAP) made it official: crypto ads can no longer run on mainstream TV, radio, or social media platforms targeting general audiences. You won’t see crypto ads during the Premier League, on Netflix, or even on Instagram Reels unless you’re watching a financial news channel like Bloomberg or CNBC UK.Even then, it’s not automatic. The ad must only appear on programs where the audience has already been vetted. That means the broadcaster must confirm viewers have passed the FCA’s appropriateness test-proving they have experience with leveraged products, understand market volatility, and know what crypto actually is. It’s not enough to say, ‘This is for professionals.’ You have to prove it.
Who Has to Comply?
All firms marketing crypto to UK residents must comply, no matter where they’re based. That includes Coinbase, Kraken, Binance, and even small startups based in Estonia or Singapore. If a UK resident sees the ad, the rules apply.There are only two categories of cryptoassets under these rules:
- Qualifying cryptoassets-fungible tokens like Bitcoin and Ethereum that can be traded on exchanges. These are fully covered by FCA rules.
- Non-qualifying cryptoassets-things like NFTs, utility tokens, or tokens tied to specific games or platforms. These fall under BCAP Rule 14.5.4 and still can’t be advertised to the public, but with slightly different rules.
Firms must categorize every asset they promote. One mistake, one mislabeled token, and you’re in violation. The FCA has already flagged multiple firms for getting this wrong. Record-keeping is mandatory: every ad, every email, every click must be saved for five years.
What About Crypto ETNs?
There’s one exception: crypto exchange-traded notes (ETNs). The FCA allows retail investors to buy these-but only if they’re traded on UK-approved exchanges like the London Stock Exchange. These aren’t direct crypto purchases. They’re financial products that track crypto prices. And even then, they’re subject to the same advertising rules: personalized warnings, cooling-off periods, and appropriateness checks.The FCA’s reasoning? ETNs are more transparent. They’re listed, regulated, and backed by financial institutions. But they’re still high-risk. The FCA still says: ‘No FSCS protection.’ If the issuer goes bust, you lose everything. No government safety net.
How Are Firms Handling This?
The transition hasn’t been smooth. According to FCA data, only 15 out of 60 crypto firms that applied for temporary registration by March 2024 got full approval. Many smaller firms simply left the UK market. The compliance costs-building new software, hiring legal teams, redesigning ads-are too high.One firm told the FCA they spent over £200,000 just on updating their website’s risk warning system. Another said they had to rebuild their entire customer onboarding flow to include the 24-hour delay. The FCA acknowledged the challenge: ‘Adjusting to new regulation can be challenging,’ they admitted in their October 2023 review.
But the FCA isn’t cutting slack. They’ve explicitly told firms: ‘Don’t look at what others are doing to see what’s acceptable.’ In a market full of bad actors, benchmarking against peers is a recipe for failure. Firms that rely on industry norms instead of the FCA’s written rules are at high risk of enforcement.
How Does the UK Compare to Other Countries?
The UK’s approach is far stricter than most. The EU’s MiCA regulation, which took effect in June 2024, allows crypto ads as long as they include disclaimers. Switzerland lets firms advertise freely with basic risk notices. Singapore permits ads with simpler warnings. The US? It’s a mess-some crypto assets are treated as securities, others aren’t, and enforcement is patchy.The UK chose a different path: protect consumers first, innovation later. They’re not banning crypto. They’re banning the hype. The message is clear: if you want to invest in crypto, you need to understand it. And if you don’t, you shouldn’t be seeing the ads.
What’s Next in 2025?
On May 2, 2025, the FCA released Discussion Paper DP25/1, laying out the next phase of crypto regulation. This isn’t just about ads anymore. It’s about trading platforms, lending, staking, and even decentralized finance (DeFi). The FCA made one thing clear: ‘Cryptoassets will remain high-risk, speculative investments.’They’re not backing down. Future licensing for crypto firms will depend on how well they’ve followed the current advertising rules. If you didn’t get your risk warnings right, you won’t get approved for the next stage.
There’s also talk of stablecoin regulation coming soon. The FCA has been monitoring stablecoins closely since late 2024. If they’re treated like money, they’ll be treated like banking products. That means even stricter rules.
What Should You Do as an Investor?
If you’re thinking about investing in crypto in the UK:- Don’t trust ads. They’re designed to be restricted for a reason.
- Use only FCA-registered firms. Check the FCA register before you deposit any money.
- Understand that you’re not protected by the FSCS. Your money isn’t insured.
- Take the 24-hour pause seriously. Use it to read real research, not just Reddit threads.
- If you’re unsure, talk to a regulated financial advisor. Not a crypto influencer.
The FCA’s goal isn’t to stop crypto. It’s to stop people from losing money because they were misled. The rules are harsh, but they’re designed to make sure you’re not just another statistic.
Can I still see crypto ads in the UK?
You can only see crypto ads on specialized financial channels like Bloomberg or CNBC UK, and only if the audience has been pre-vetted through the FCA’s appropriateness test. Ads on TV, social media, billboards, or general websites are banned.
What happens if a crypto firm breaks the FCA advertising rules?
Firms can face fines up to 10% of their annual turnover. The FCA can also suspend their operations, require them to refund customers, or deny future licensing. Multiple firms have already been warned or fined for non-compliance since October 2023.
Are NFTs banned from advertising in the UK?
NFTs and other non-qualifying cryptoassets aren’t covered by the same rules as Bitcoin or Ethereum, but they’re still restricted under BCAP Rule 14.5.4. Ads targeting the general public are not allowed. Only specialized audiences can be targeted, and even then, with clear risk disclosures.
Do I need to be a professional investor to invest in crypto in the UK?
No, you don’t need to be a professional. But if you’re a retail investor, you must pass an appropriateness test before making an investment. This includes answering questions about your experience with leveraged products, understanding of volatility, and knowledge of crypto. Firms must record this assessment.
Is crypto trading legal in the UK?
Yes, trading crypto is legal in the UK. But advertising it to the public is heavily restricted. You can buy, sell, and hold crypto through FCA-registered platforms. What’s banned is the mass marketing that encourages uninformed people to invest.
Are crypto ETNs safer than direct crypto investments?
Crypto ETNs are slightly more regulated because they’re traded on approved UK exchanges and issued by licensed institutions. But they’re still high-risk. You’re not owning the actual crypto-you’re buying a financial product that tracks its price. And like direct crypto, ETNs are not covered by the Financial Services Compensation Scheme (FSCS).
Can I advertise crypto if I’m based outside the UK?
If your ads reach UK residents, yes-you must comply. The FCA’s rules apply based on where the audience is, not where the company is based. So even if you’re in the US or Singapore, targeting UK users means following UK law.
What’s the difference between FCA and BCAP rules?
The FCA regulates the content and targeting of financial promotions, including personalized risk warnings and appropriateness tests. BCAP sets the broadcast rules-specifically, which media channels can show crypto ads. Together, they ensure ads aren’t just misleading, but also not seen by the wrong people.
Final Thoughts
The UK’s crypto advertising rules aren’t perfect. They’re complex, expensive to follow, and frustrating for firms trying to grow. But they’re also the most honest approach to crypto regulation we’ve seen. Instead of pretending crypto is safe, the FCA says: ‘It’s risky. If you want to invest, make sure you know what you’re doing.’For investors, that means less noise and more responsibility. For firms, it means higher costs and stricter oversight. And for the market? It means a cleaner, more sustainable path forward-even if it’s slower.
Caren Potgieter
Finally someone in government gets it. Crypto ads were just flashy gambling billboards with a tiny disclaimer no one reads. I’m from South Africa and we’ve seen people lose everything to these things. This is common sense, not overreach.