> ## Content Index > Fetch the complete content index at: https://knowcrypto.fun/llms.txt > Use this file to discover other available public pages before exploring further. # Crypto in the UK: FCA rules, HMRC tax and the 2027 regime - URL: https://knowcrypto.fun/crypto-in-the-uk/ - Published: 2026-11-02T12:00:08.000Z - Updated: 2026-11-02T12:00:08.000Z - Description: How the FCA regulates crypto today, what changes in October 2027, how HMRC taxes your gains, and where to report fraud. - Author: Know Crypto Editor - Tags: United Kingdom, Tax, Buying Crypto is legal in the UK, and firms that offer it must be registered with the Financial Conduct Authority (FCA). HMRC taxes your gains with Capital Gains Tax above a £3,000 yearly allowance, and taxes rewards like staking as income. A full new licensing regime for crypto firms starts on 25 October 2027. This guide covers how the FCA regulates crypto today, what changes in 2027, how HMRC taxes it, and where to report fraud now that Action Fraud has been replaced. ## At a glance | Topic | The short version | | ---------------- | ------------------------------------------------------------ | | Regulator | Financial Conduct Authority (FCA) | | Check a platform | FCA Register and FCA Warning List | | Tax on gains | Capital Gains Tax at 18% or 24% above £3,000 a year | | Tax on rewards | Income Tax when received | | Big change ahead | Full FCA licensing from 25 October 2027 | | Report a scam | Report Fraud, 0300 123 2040 (Scotland: Police Scotland, 101) | ## Who regulates crypto in the UK ### Today: FCA registration Any firm offering crypto services in the UK must be registered with the FCA under the anti-money-laundering rules. Registration means the FCA has checked the firm's anti-money-laundering controls. It does **not** mean the FCA supervises how the firm treats customers, and there is no Financial Services Compensation Scheme protection if a crypto firm fails. Before you sign up, search for the firm on the [FCA Register](https://register.fca.org.uk/?ref=knowcrypto.fun) and check the [FCA Warning List](https://www.fca.org.uk/scamsmart/warning-list?ref=knowcrypto.fun) of firms to avoid. ### Rules on adverts and first-time buyers Since October 2023, crypto adverts aimed at UK consumers must follow FCA rules. In practice that means: - clear risk warnings on adverts and sign-up pages - a 24-hour cooling-off period the first time you invest with a firm - an appropriateness check, so the firm asks questions to confirm you understand the risks - no "refer a friend" or new-joiner bonuses Crypto derivatives, such as futures and contracts for difference, have been banned for retail customers since January 2021\. If a platform offers you leveraged crypto trading in the UK, treat that as a warning sign. ### From 25 October 2027: a full licensing regime The government has passed regulations that bring crypto trading platforms, brokers, custody and staking under full FCA authorisation, much like other financial firms. The FCA opened applications at the end of September 2026, and the new regime is due to start on 25 October 2027. Firms already registered still need the new licence. Firms that apply in the application window can keep operating while the FCA decides. After go-live, check that any platform you use holds the new authorisation, not just the old registration. ## How crypto is taxed in the UK HMRC treats crypto as property, not money. ### Capital Gains Tax You make a disposal, and may owe Capital Gains Tax, when you: - sell crypto for pounds - swap one coin for another - spend crypto on goods or services - give crypto away, except to your spouse or civil partner Each tax year you can make £3,000 of gains tax-free (the annual exempt amount). Gains above that are taxed at: | Your income | CGT rate on crypto | | -------------------------- | ------------------ | | Within the basic-rate band | 18% | | Above the basic-rate band | 24% | Losses can be set against gains in the same year and carried forward, but only if you report them to HMRC within four years. ### The matching rules HMRC has special rules for working out what you paid for coins you sell: 1. coins bought on the **same day** as the sale are matched first 2. then coins bought in the **next 30 days** (this stops "bed and breakfasting", where you sell and buy back to create a loss) 3. everything else comes from a **pool**, at the average price you paid Crypto tax software applies these rules automatically, which helps if you trade often. ### Income Tax Staking rewards, mining rewards, crypto received as pay, and airdrops you got in return for doing something are usually taxed as income at their value in pounds when you receive them. ### Reporting - Report gains through Self Assessment. The online deadline is 31 January after the end of the tax year (which runs 6 April to 5 April). - You must report if your gains are above £3,000, **or** if the total you received from disposals was over £50,000, even if you made no gain. - From 1 January 2026, UK crypto platforms collect customer details under the OECD's Crypto-Asset Reporting Framework, with the first reports to HMRC due in 2027\. Assume HMRC will see your platform activity. For a comparison with other countries, see [how crypto is taxed around the world](https://knowcrypto.fun/how-crypto-is-taxed/). ## How to buy crypto safely in the UK 1. **Check the FCA Register** before depositing, and from October 2027 check for the new authorisation. 2. **Expect the checks.** The cooling-off period and appropriateness questions are normal. A platform that skips them may not be following UK rules. 3. **Use strong security:** an authenticator app rather than text-message codes. 4. **Move long-term holdings to your own wallet.** See our [wallet guide](https://knowcrypto.fun/crypto-wallets-explained/). 5. **Keep records** of dates, amounts and sterling values for every transaction. Our [guide to choosing an exchange](https://knowcrypto.fun/how-to-choose-a-crypto-exchange/) explains what else to check. ## Scams and where to report them Since 4 December 2025, fraud in England, Wales and Northern Ireland is reported to **Report Fraud**, which replaced Action Fraud: - online at [reportfraud.police.uk](https://www.reportfraud.police.uk/?ref=knowcrypto.fun) - by phone on 0300 123 2040 In Scotland, report to Police Scotland on 101\. Also tell your bank and the platform you sent money through straight away. Common UK crypto scams include fake investment platforms advertised with fake celebrity endorsements, "recovery" firms that charge to get lost money back, and messages pretending to be from your exchange. Our [scam guide](https://knowcrypto.fun/crypto-scams-india-uae/) covers the red flags. ## FAQ ### Do I pay tax on crypto in the UK if I don't sell? Not on price rises alone. Tax is due when you sell, swap, spend or give away crypto, or when you receive crypto as income, such as staking rewards. ### Is crypto protected by the FSCS? No. The Financial Services Compensation Scheme does not cover crypto, so if a platform fails you may lose what you held there. ### What is the crypto tax-free allowance in the UK? The Capital Gains Tax annual exempt amount is £3,000 per tax year. It covers all your gains together, not just crypto. ### When does the new UK crypto regime start? The FCA's new authorisation regime for crypto firms is due to go live on 25 October 2027. Sources: [GOV.UK, Check if you need to pay tax when you sell cryptoassets](https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets?ref=knowcrypto.fun); [FCA, Cryptoassets](https://www.fca.org.uk/firms/cryptoassets?ref=knowcrypto.fun); [Linklaters, FCA timetable for crypto licence applications](https://financialregulation.linklaters.com/post/102m1g3/fca-indicates-timetable-for-crypto-licence-applications?ref=knowcrypto.fun); [Report Fraud, Service goes live](https://www.reportfraud.police.uk/news/report-fraud-service-goes-live/?ref=knowcrypto.fun). *This is not financial advice. Crypto is volatile and you can lose money. Do your own research.*