Archax Secures FCA Approval to Oversee Crypto Promotions in the UK

The UK Financial Conduct Authority (FCA) has granted Archax the authority to approve financial promotions for unauthorised cryptocurrency firms. This development follows the FCAs introduction of stricter guidelines on cryptoasset financial promotions, known as PS23/6. These regulations require promotional materials for cryptoassets to adhere to the same high standards as traditional financial products.

Under the FCAs rules, all financial promotions must be reviewed and approved by an authorised entity. The objective is to ensure that these promotions are clear, fair, and not misleading. Firms that fail to comply risk severe penalties and reputational harm.

Archaxs new status as a Section 21 financial promotion approver enables it to act on behalf of unauthorised crypto firms, ensuring their marketing activities meet regulatory standards. Prior to this formal approval, the FCA had already permitted Archax to offer financial promotion approval services while its application was under review.

Archax‘s Head of Regulation stated that the FCA’s approval reflects the firm‘s dedication to compliance and regulation. The achievement represents a significant step as Archax moves beyond the FCA’s transitional regime to become a fully authorised Section 21 approver. Since the regimes inception in October 2023, Archax has worked to support its clients by adhering to the high standards set by the regulator.

In November 2024, Archax played a key role in helping cryptocurrency exchange Bitget resume operations in the UK. Bitget had earlier suspended its UK services in May 2024 to comply with the FCA‘s Financial Promotions (FinProm) regime. Archax’s endorsement allowed Bitget to relaunch its services, enabling UK users to access a range of offerings, including crypto trading, custody, and tokenised real-world assets.

The FCA has maintained a rigorous approach to regulating cryptocurrency companies. According to its latest annual report, only 13% of applications for money laundering registration were approved in the past fiscal year. Out of 35 applications submitted, just four received approval, with notable successes including BNXA (Binances payments partner), a UK unit of PayPal, and Komainu, a crypto custody venture. The rest were either withdrawn or rejected due to incomplete or unsatisfactory submissions.

Since the FCA began supervising crypto firms under anti-money laundering rules in 2020, only 44 out of 359 applications have successfully secured registration. This challenging process has prompted some companies to exit the UK in favour of jurisdictions with less stringent requirements. Complaints from applicants often cite long processing times, insufficient feedback, and perceived unfair treatment.

The FCAs latest regulations require crypto firms to include clear risk warnings in their promotions and ensure investors possess the necessary knowledge to engage in cryptocurrency trading. Marketing practices like “refer a friend” bonuses have been banned, and new investors are subject to a 24-hour cooling-off period. Non-compliance can result in penalties, including imprisonment of up to two years.