According to @wallisi, the UK Financial Conduct Authority’s (FCA) Financial Promotions regime is causing UK users to be blocked from many crypto rewards programs, airdrops and other initiatives. According to the FCA, from 8 October 2023 any cryptoasset promotion to UK consumers must be communicated or approved by an authorized firm, include fair, clear and not misleading disclosures, and apply a 24-hour cooling-off period for first-time investors alongside an appropriateness assessment for retail clients. According to the FCA, monetary and non-monetary incentives in crypto promotions (for example, refer-a-friend and new-customer bonuses) are banned, and breaches of the regime are a criminal offense. According to the FCA, firms and platforms are required to remove illegal promotions on websites, apps and social media, which means access to incentivized campaigns for UK users is contingent on FCA-compliant promotion routes. According to the FCA’s rules, traders and token issuers should expect UK participation in rewards or airdrops that function as promotional incentives to be restricted, affecting eligibility criteria, campaign design, and launch timelines for token distributions targeting UK retail.

According to the source, the UK tax authority HM Revenue & Customs is intensifying compliance outreach to crypto investors over unpaid gains, and HMRC classifies most cryptoasset disposals as taxable capital gains that must be reported via Self Assessment. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual The UK reduced the Capital Gains Tax annual exempt amount to £3,000 from April 2024, bringing more BTC and ETH profits into scope for tax reporting and payment. Source: https://www.gov.uk/capital-gains-tax/allowances HMRC can obtain user and transaction data from crypto exchanges using statutory information powers and data-gathering notices, while UK crypto firms must comply with the crypto Travel Rule, enhancing traceability of transfers. Source: https://www.gov.uk/guidance/checks-what-hmrc-can-do; https://www.fca.org.uk/firms/cryptoassets/travel-rule Late filing and late payment trigger penalties and interest, increasing effective trading costs for UK-based crypto traders if gains are unreported or paid late. Source: https://www.gov.uk/self-assessment-tax-returns/penalties; https://www.gov.uk/government/publications/interest-rates-for-late-and-early-payments/interest-rates-for-late-and-early-payments For trade planning, HMRC applies pooling and the same-day and 30-day matching rules to cryptoassets, affecting tax-loss harvesting and cost basis calculations, so accurate transaction records are essential. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual; https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg51500 Cross-border data visibility is set to expand as jurisdictions implement the OECD Crypto-Asset Reporting Framework, to which the UK has committed, increasing compliance risks for offshore holdings. Source: https://www.oecd.org/tax/exchange-of-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standard.htm

According to the source, the UK aims to complete its stablecoin regulatory framework by 2026 to keep pace with US crypto policy, signaling a defined policy timeline for payment stablecoins (source: public X post dated Oct 18, 2025). The UK has already granted regulators powers to oversee fiat-backed stablecoins used as a means of payment through the Financial Services and Markets Act 2023, with the Financial Conduct Authority supervising firms and the Bank of England responsible for systemic arrangements (source: HM Treasury, Financial Services and Markets Act 2023; Bank of England discussion paper on the regulatory regime for systemic payment systems using stablecoins, Nov 2023). FCA and Bank of England consultations set out issuer authorization, 1:1 high‑quality liquid reserve expectations, redemption at par in fiat, and custody and operational resilience requirements relevant to UK-facing firms (source: FCA DP23/4 Regulating cryptoassets including stablecoins, 2023; Bank of England systemic stablecoins discussion paper, Nov 2023). For traders, monitoring forthcoming FCA and Bank of England rulemaking is critical because reserve composition, audit and reporting, and redemption timelines will determine how GBP-linked and USD-linked stablecoins such as USDC and USDT can be offered by UK-authorized entities and integrated by local platforms (source: HM Treasury response on the future financial services regulatory regime for cryptoassets, Oct 2023; FCA DP23/4 2023; Bank of England systemic stablecoins discussion paper, Nov 2023).