UK crypto exchanges can’t offer refer-a-friend bonuses because FCA rule COBS 4.12A.7R bars any financial promotion of a restricted mass market investment from offering a retail client a monetary or non-monetary incentive, and the Handbook glossary puts qualifying cryptoassets in that category.
This is an evergreen explainer.
Why can’t UK crypto exchanges offer refer-a-friend bonuses?
This desk read COBS 4.12A on 23 September 2026 (last updated 23/10/2025). Rule 4.12A.7R(1) bars a firm from communicating or approving a promotion of a restricted mass market investment that offers a retail client any monetary or non-monetary incentive. The Handbook glossary puts qualifying cryptoassets in that category. Its stated purpose (4.12A.1G): investors should be persuaded only by the features of the investment.
What counts as an incentive, and what does not?
| Caught (4.12A.8G examples) | Not caught (4.12A.9G, 4.12A.7R(4)) |
|---|---|
| Bonuses for investing | Information and research tools |
| Bonuses for referring someone | Lower fees not linked to trade volumes, offered to all retail clients |
| Cashback when investing | An incentive solely to transfer an existing holding to another provider |
| Fee discounts or rebates linked to trade volumes | |
| Free gifts after investing, such as laptops or phones | |
| Extra free investments or discounts on investments |
The left column is guidance, “not limited to”; the binding text is 7R. Under 4.12A.9A guidance, a benefit offered only for a fixed period, contingent on future investment, or only via a social media link is likely to be an incentive. The in-house exception in 7R(3) names non-readily realisable securities, P2P and long-term asset funds; on the text of the rule, not crypto.
Is the incentive ban the only FCA crypto marketing rule?
No. The FCA’s June 2023 press release announced it alongside a cooling-off period for first-time investors from 8 October 2023, knowledge checks and risk warnings; see our cooling-off explainer and our appropriateness-test explainer. The Handbook also flags a future version dated 25/10/2027, which this desk did not read, so this post does not say whether the rule changes.
Frequently asked questions
Are refer-a-friend bonuses banned for crypto in the UK? Yes, in promotions to retail clients. COBS 4.12A.8G names bonuses where the client refers another person as an incentive, and COBS 4.12A.7R bars any incentive in a promotion of a restricted mass market investment, which includes qualifying cryptoassets. The FCA announced the ban in June 2023.
Can crypto exchanges offer cashback in the UK? Not as a reward for investing. COBS 4.12A.8G lists cashback when investing, and fee rebates linked to trading volumes, as incentives. Lower fees not linked to trade volumes and open to all retail clients are, per COBS 4.12A.9G, not a monetary incentive.
Why can’t I get a crypto sign-up bonus in the UK? Because a bonus for investing is the first incentive COBS 4.12A.8G lists, and COBS 4.12A.7R bans incentives in crypto promotions to retail clients. A welcome bonus tied to a first purchase sits inside that. Under COBS 4.12A.9A, an offer running only for a fixed period is likely to count too.
Crypto assets are high risk and largely unprotected by FSCS; nothing here is financial advice. The risk is yours.