We are pleased to announce that the Financial Conduct Authority (FCA) has granted us full authorisation for Section 21 (S21) Permissions regarding the approval of qualifying crypto-asset financial promotions.
This announcement marks the formal conclusion of a challenging regulatory chapter. Specifically, this authorisation comes following the removal of the Own Initiative Requirement (OIREQ) previously imposed by the FCA and the formal withdrawal of our appeal to the Upper Tribunal.
Here is what happened, what has changed, and what this means for the future of crypto-asset marketing in the UK.
The Context: The S21 Approver Regime
To recap, under the FCA’s rules (primarily PS23/6), any firm communicating a financial promotion for qualifying crypto-assets to UK consumers must either be authorised or have that promotion approved by an authorised firm, known as a Section 21 Approver.
This regime is designed to ensure that crypto marketing is "clear, fair, and not misleading," protecting consumers from high-risk, often misleading advertisements. It is a criminal offence to breach these rules.
The Challenge: The OIREQ and the Appeal
In late 2023, the FCA used its "Own Initiative" powers (OIREQ) to impose restrictions on our ability to approve crypto-asset promotions. These are draconian powers the FCA holds to intervene immediately when it believes a firm cannot satisfy its threshold conditions or when it is "desirable" to advance consumer protection objectives.
Disagreeing with the basis and proportionality of this intervention, we took the rare step of referring the matter to the Upper Tribunal. The Upper Tribunal is an independent body that allows firms to challenge FCA decisions via a full re-hearing of the facts (de novo review).
The Resolution: Authorisation, Removal, and Withdrawal
We are now in a position to confirm that we have reached a resolution with the FCA.
The OIREQ is lifted: The restrictions previously placed on our firm have been formally removed. We are no longer operating under the shadow of that intervention.
The Appeal is withdrawn: Consequently, we have withdrawn our appeal to the Upper Tribunal. This allows us to move forward constructively, focusing on compliance rather than litigation.
Full S21 Permissions Granted: The FCA has now explicitly authorised us to approve qualifying crypto-asset financial promotions.
What This Means for the Firm and Our Clients
This is not just a return to "business as usual." It is a strategic upgrade.
1. A Reaffirmed Regulatory Status
The granting of this permission serves as a strong signal to the market. Having passed through the intensity of an OIREQ and subsequent FCA scrutiny, our compliance framework has been tested to a very high standard. We have demonstrably met the FCA’s requirements regarding due diligence, risk warnings, and client categorisation.
2. The Ability to Approve Promotions Again
With the OIREQ removed, we can resume approving financial promotions for compliant crypto-asset firms. Many firms currently face a cliff edge with the new regime; we are now positioned to help them navigate it legally.
3. Navigating the Runway to 2027
The regulatory landscape is changing. The FCA has set a strict timeline for the new cryptoasset regime commencing 25 October 2027.
Application Period: From 30 September 2026 to 28 February 2027, existing users of S21 approvers must apply for their own authorisation if they wish to continue.
Our Role: While firms can use S21 approvers during this application period, the clock is ticking. We can provide the "bridge" of compliance for firms preparing for their own direct authorisation, or we can act as the permanent approver for those who do not seek direct FCA authorisation.
Conclusion
The withdrawal of the Upper Tribunal appeal and the removal of the OIREQ mark a clean slate. We have emerged from this process with a deeper understanding of the FCA’s expectations and a more robust compliance infrastructure.
For crypto-asset firms seeking a secure route to market in the UK, we are now open for business as a fully authorised S21 approver.
If you are a crypto-asset business looking to market to UK consumers and need a compliant S21 approver, please get in touch with our compliance team.
