A UK lawmaker has urged the Financial Conduct Authority (FCA) to examine whether Reform UK leader Nigel Farage may have breached marketing and market conduct rules through his promotion of a bitcoin-focused firm in which he holds a financial stake.
Call for FCA review of Farage’s crypto promotion
Liberal Democrat deputy leader Daisy Cooper has written to FCA chief executive Nikhil Rathi asking the regulator to assess whether Farage’s role in promoting Stack BTC, alongside his personal investment in the company, could amount to market abuse, conflicts of interest, or harm to retail crypto buyers.
Stack BTC recently publicised a ÂŁ2 million ($2.7 million) bitcoin transaction it said was carried out by Farage, only weeks after he invested ÂŁ215,000 ($291,283) in the firm. Cooper said this timeline raised red flags over whether his actions and public communications might have influenced market sentiment or encouraged speculative trading in digital assets.
Potential conflict of interest and market impact
Cooper’s letter highlights concerns about a public figure promoting a company and its related asset while also holding a direct financial interest. She asked the FCA to consider whether Farage’s public statements and promotional activity could have:
- shaped market expectations around bitcoin and related products
- contributed to sentiment-driven price movements
- exposed retail buyers to outsized risks during a period of heightened volatility
The call comes as bitcoin’s 30‑day annualised volatility has hovered around 65 percent, emphasising how sensitive the market can be to endorsements by high‑profile figures.
Comparison with Trump-style crypto campaigning
The correspondence cites reports drawing parallels between Farage’s communications strategy and that of former US president Donald Trump, whose family is reported to have generated about $1.4 billion from crypto-related ventures.
According to the letter, Farage has publicly supported wider crypto adoption, backing ideas such as:
- allowing tax payments in digital assets
- creating a government-backed bitcoin reserve
Cooper suggested that this broader advocacy, combined with his direct role in a crypto business, may blur lines between political campaigning, financial promotion, and personal gain.
Record political donation linked to Tether backer
Cooper also raised questions about political funding. Reform UK received a ÂŁ9 million ($12.2 million) donation last year from businessman Christopher Harborne, described as an investor in stablecoin issuer Tether. She noted it is the largest single political donation in modern UK history.
The letter urges regulators to look at whether Farage’s stance on crypto and his promotional work could carry financial implications for him or his party, particularly given the donor’s links to a firm that has faced regulatory scrutiny in other jurisdictions.
Authorities are being pressed to examine whether the flow of funds from the digital asset sector into domestic politics warrants additional oversight.
Concerns over messaging to retail buyers
Cooper’s letter points to earlier media appearances in which Farage hosted guests forecasting extremely high future valuations for bitcoin and discussed digital assets as an accessible route to wealth. She said these discussions appeared to:
- emphasise upside potential
- downplay UK regulatory warnings
- understate volatility and the risk of substantial losses
She has asked the FCA to determine whether his commentary and promotional activity could constitute interference in the market, or attempted manipulation, that may have led the public into taking avoidable financial risks.
FCA’s tougher stance on high-risk promotions
The complaint comes under the shadow of the FCA’s tightened rules on advertising high‑risk products, including crypto assets. Over the past two years, these rules have come fully into force and require that promotions are “clear, fair and not misleading”.
Under this regime:
- financial promotions must include balanced risk warnings
- firms face enforcement if communications are judged to misrepresent or oversimplify risk
- the FCA has issued alerts on more than 350 unregistered crypto‑asset firms in the last year
The regulator has repeatedly warned that digital assets remain high risk and largely unregulated, and that consumers should be prepared to lose all the money they put in.
Advertising influence and retail exposure
Cooper’s concerns are anchored in FCA research showing the strong influence of marketing on consumer behaviour. One recent survey by the watchdog found:
- 49 percent of UK adults who bought digital assets said online or social media advertising had influenced their decision
This link between crypto uptake and digital marketing has made financial promotions by prominent public figures a growing focus for regulators, who fear retail buyers may mistake visibility for safety.
Next steps for the regulator
The FCA is now expected to review Cooper’s letter and assess whether the issues raised meet the threshold for a formal inquiry into Farage’s activities and Stack BTC’s communications.
The timing of the £2 million bitcoin transaction announcement, coming shortly after Farage’s personal investment in the business, is central to the call for scrutiny, particularly in such a volatile market.
At this stage, the FCA has not issued any public comment on whether it intends to open an investigation. Farage’s office has been contacted for a response.
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