February 22, 2026
10 mins
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January 28, 2026
January 28, 2026
The UK is updating its cryptocurrency regulations through the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025, introduced to Parliament in December 2025. By October 2027, oversight will shift from Money Laundering Regulations to full FCA supervision.
This gives you time to prepare and choose an advisor who understands the new rules, not just the current Money Laundering Regulations.
In this guide, we’ll help you find advisors who can handle FCA authorization, HMRC tax rules, and the new admissions and market abuse rules.
A crypto advisor helps you with digital asset investments, tax planning, and following regulations. They can tell you which regulator is in charge of your activities and how to organize your holdings under both current and future rules.
The difference between qualifying crypto assets and qualifying stablecoins changes how they are regulated. In December 2025, the FCA released three consultation papers (CP25/40, CP25/41, CP25/42) that explain how different crypto activities will be regulated when the new rules take effect.
A good advisor knows how the FCA, HMRC, and the Prudential Regulation Authority work together.
In the UK, independent crypto advisors usually charge between £150 and £400 per hour. Specialists in complex regulatory or tax matters sometimes charge more.
Fee-only models are best, such as hourly rates, fixed fees, or retainers. Avoid advisors who charge a percentage of your portfolio value, as this can create conflicts of interest.
Make sure your written fee agreement lists the services included, payment schedules, and any extra costs for tax preparation or compliance reviews.
For regulated financial advice, look for FCA-authorized advisers who are registered to provide crypto asset services. For tax advice, choose HMRC-registered tax advisers or chartered accountants who specialize in crypto.
The FCA Register shows firms registered under Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017. From October 2027, advisors will need full FSMA authorization.
Avoid unregulated social media influencers or anonymous online advisors. The FCA’s rules require clear risk warnings and proof of qualifications.
Yes. The Crypto Asset Reporting Framework (CARF) took effect on 1 January 2026, requiring crypto service providers to collect customer data and report to HMRC by 2027.
HMRC receives information from UK exchanges and has data-sharing agreements with international tax authorities through the Common Reporting Standard.
For 2024/25 onwards, HMRC requires separate identification of crypto amounts on Self Assessment returns, signaling increased monitoring.
Check the FCA Register for firms registered under Money Laundering Regulations. Request FCA reference numbers and verify directly.
From October 2027, advisors providing qualifying crypto asset services need full FCA authorization under FSMA. Ask whether they're preparing for this transition.
Independent advisors do not get paid by the platforms they recommend. Ask them directly about any referral fees, commissions, or revenue-sharing deals.
Fee-only advisors charge clients directly rather than earning platform commissions. Watch for advisors consistently recommending the same platform regardless of needs.
The FCA's Consumer Duty regime applies to crypto asset firms from October 2027. Advisors should explain how this affects product recommendations.
For 2025/26, Capital Gains Tax rates on crypto are 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers, according to HMRC guidance.
The annual CGT allowance is £3,000, down from £6,000 the previous year. This reduction means more investors exceed the tax-free threshold.
Advisors should understand share pooling methods for cost basis, the 30-day rule for same-crypto repurchases, and Section 104 pool calculations.
Look for CTA (Chartered Tax Adviser), ACCA, ACA, or CFP qualifications. These require ongoing professional education and ethical standards.
The Senior Managers and Certification Regime (SMCR) will apply to crypto asset firms from October 2027. Advisors working with regulated firms should understand these accountability frameworks.
Written fee agreements must specify services, payment schedules, and additional costs. FCA rules require clear disclosure of all fees.
Ask about costs for regulatory research, tax return preparation, or compliance reviews upfront.
All crypto service providers must follow Money Laundering Regulations. Advisors should discuss identity verification, source of funds checks, and beneficial ownership procedures.
Ask about transaction monitoring systems and designated Money Laundering Reporting Officers.
The FCA's December 2025 consultation papers include detailed AML requirements for the incoming regime.
Ask for references from clients in similar situations. If you're a higher-rate taxpayer with complex DeFi positions, speak with clients who faced comparable challenges.
Professional networks and industry forums provide independent perspectives on advisor reputation.
Advisors should explain regulations clearly. If meetings leave you confused, the advisor isn't serving you effectively.
Transparency extends to service limitations and risks. Professional advisors welcome informed clients rather than discouraging questions.
Ask about position sizing, diversification across asset types, and risk management strategies for crypto volatility.
The FCA's prudential regime proposals (CP25/42) set capital requirements for different crypto asset activities. Advisors should understand how these affect service providers.
The UK framework operates on three layers: current MLR requirements, incoming FSMA authorization, and the admissions and market abuse regime.
Test knowledge by asking about the differences between qualifying crypto assets and qualifying stablecoins. Regulatory treatment differs significantly.
No legitimate advisor guarantees returns in volatile crypto markets. Promises of specific gains indicate incompetence or dishonesty.
The FCA's financial promotions regime requires balanced risk disclosure. Advisors discussing only potential gains without addressing risks violate these requirements.
Ask how advisors are preparing for the October 2027 implementation. They should track FCA consultation papers, understand CARF reporting effective January 2026, and follow Treasury guidance on Crypto Asset Regulations.
Ask for examples of how they've helped clients prepare for regulatory transitions.
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This article is for educational purposes only. It is a general guide for founders and users navigating the Web3 space. It does not constitute financial advice. Always do your own research before making any investment decisions.If you want to learn more about raising funds or which IDOs to look into, our team is here to help. Feel free to reach out to us on Telegram at any time.
