The FCA’s first crypto crackdown: crypto promotions and the reach of UK regulation
Written by Kate Washington - 08 May 2026
Advertising financial products to UK consumers without authorisation from the Financial Conduct Authority (FCA) is illegal under the Financial Services and Markets Act 2000 (FSMA). Earlier this year, the FCA put that principle to the test by taking a crypto exchange to the High Court for the first time.
The exchange in question was HTX (formerly Huobi), a Panama-based platform which had been running ads on TikTok, Instagram and YouTube that were accessible to UK users despite having no FCA authorisation. The FCA had previously issued warnings to the company requesting they stop showing its ads to a UK audience, but HTX did not comply. The regulator then chose to escalate the matter.
The legal basis for this is section 21 of FSMA, which makes it a criminal offence to promote financial products to UK consumers without prior authorisation. Since October 2023, crypto assets have been brought within its scope. HTX had neither authorisation nor an approved promoter. Its position was that it was not specifically targeting UK users, but the FCA’s view was that this was beside the point: if a promotion is capable of reaching UK consumers the restriction applies. The fact that HTX is based overseas did not alter that analysis, particularly given that no geo-blocking measures were in place.
The case is significant for a number of reasons. The FCA has confirmed that it intends to open its crypto authorisation gateway in September 2026 ahead of a broader regime expected in October 2027. In practical terms, this is likely to generate a substantial amount of compliance work, as firms look to obtain authorisation, review their marketing practices and, where necessary, adjust their structures. It also indicates that offshore platforms with UK-facing activity are firmly within the FCA’s focus. HTX is unlikely to be the last case of this kind.
More broadly, the action sits alongside a wider shift in the FCA’s approach to online financial promotion. In February, seven individuals were sentenced at Southwark Crown Court in connection with an illegal forex promotion scheme, involving social media influencers, as part of the FCA’s “finfluencer” crackdown. Taken together, these developments suggest a regulator that is increasingly willing to use both civil and criminal powers in this area.
For those following developments in this area, the case is a useful illustration of how financial regulation, disputes, and technology increasingly overlap in practice. It also reflects the kind of work that is likely to grow as the regime develops and enforcement activity continues to ramp up.