A crypto promotion is the whole journey, not the advert

On 8 October 2023 qualifying cryptoassets became controlled investments, and the UK financial promotion regime started applying to anyone marketing them to UK consumers, wherever the firm is based. Clifford Chance’s briefing from before the rules started made a point that still decides most reviews: one customer journey can contain several promotions, and the rules change at the step where the consumer can put money in.

In the regime’s first year the FCA issued 1,702 consumer alerts about illegal crypto promotions and had 56 apps removed from UK app stores. FCA, Financial promotions quarterly data 2024 Q3.

Who can communicate a crypto promotion

A crypto promotion to UK consumers can be communicated in four ways:

A firm that fits none of these cannot communicate the promotion. There is no reverse solicitation exemption, so a banner on a website that can be seen from the UK can be a promotion even when the customer arrived on their own.

The article 73ZA route has an end date. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 omit it from 25 October 2027, when the new authorisation regime for cryptoasset firms starts (regulation 42(4)). The FCA’s application window for that regime runs from 30 September 2026 to 28 February 2027. Baker McKenzie.

What every crypto promotion needs

Any crypto promotion to UK retail consumers, from a billboard to a social post, has to meet three rules on top of being fair, clear and not misleading:

• No incentive to invest. Bonuses, free crypto, cashback, prize draws and refer-a-friend rewards are banned, whether the reward goes to the person referring or the person referred (COBS 4.12A.7R).
• The prescribed risk warning. “Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.” On digital media it is followed by “Take 2 mins to learn more”, linking to a risk summary (COBS 4.12A.10R–11R).
• The warning is prominent. It has to be visible where the consumer reads the promotion, not shrunk into a footer below the call to action (COBS 4.12A.36R).

Where a direct offer begins

A direct offer financial promotion specifies how to respond, such as a form or a button that leads to an investment. The FCA explained its view in PS23/6: a promotion that contains a mechanism enabling consumers to place money in the investment is likely to be a direct offer, and a “buy now” button is one of its examples.

Before a firm can communicate a direct offer to a new consumer, the following four steps have to be completed:

1. A 24-hour cooling-off period starts when the consumer asks to see the direct offer. At the end, the consumer is asked whether to continue or leave (COBS 4.12A.18R).
2. A personalised risk warning is shown during the cooling-off period, before the consumer is categorised (COBS 4.12A.20R).
3. Client categorisation establishes that the consumer is a restricted, high-net-worth or certified sophisticated investor (COBS 4.12A.21R).
4. An appropriateness assessment checks that the cryptoasset is appropriate for the consumer before any order is processed (COBS 4.12A.28R).

A journey for a crypto trading app shows where the line falls:

Clifford Chance’s view is that a button which only starts an onboarding questionnaire is unlikely to make the page a direct offer. A button that lets the consumer invest, or agree terms on which to invest, is likely to. Both the button and the page it leads to are assessed together.

What the FCA found when it checked

In August 2024 the FCA published what it found when it reviewed how firms had implemented the direct offer steps. FCA, Assessing firms’ compliance with ‘back end’ cryptoasset financial promotions rules.

• Every firm sampled had a cooling-off period of at least 24 hours, but several did not offer an express choice to continue or leave at the end, or gave the two options unequal prominence.
• One firm showed the personalised risk warning after categorisation instead of before it.
• Some categorisation flows led consumers towards a qualifying answer, renamed the categories or changed the prescribed statements.
• Many appropriateness tests worked as tutorials, with cues to the right answer and unlimited retakes.

None of these failures are in an advert. They sit in screens that a marketing review never sees unless someone asks for them.

Map the journey before reviewing the creative

A workable sequence for a crypto campaign:

1. List every touchpoint, from the advert to the first order screen, including emails and push notifications sent after sign-up.
2. Mark each step as a standard promotion or a likely direct offer, and record the reasoning.
3. Check every standard promotion for incentives, the warning and its prominence.
4. For the first direct offer, collect evidence of the four steps: screenshots of the cooling-off screen and the choice to continue or leave, the personalised warning, the categorisation flow and the appropriateness questions.
5. Re-run the assessment when the journey changes. A new “Buy” shortcut on the home screen can turn a standard promotion into a direct offer.

This is a suggested review structure. Whether a given step is a direct offer depends on the circumstances and needs a firm’s own assessment.

Connor Financial Promotions scans adverts, social posts, PDFs, videos and web pages against the FCA’s crypto rules: the incentive ban, the prescribed warning, its prominence and the “learn more” link, price hype, and crypto derivatives marketed to retail. Where a creative leads into a purchase journey, Connor asks for the onboarding screens instead of assuming the cooling-off step exists or is missing. Two checks stay with the firm: whether the 24-hour delay works in the live app, and how its appropriateness test is designed.