UK's FCA Utilizes Cartoon Video to Convey Crypto Advertising Guidelines Amid Potential Market Exits
Summary:
The Financial Conduct Authority (FCA) of the UK is emphasising its advertising guidelines for cryptocurrency companies via a pixelated cartoon on its website. This unusual initiative clarifies these rules, which include the prohibition of free gifts or referral bonuses and the necessity of clear warning about potential financial loss. Despite FCA's attempts to educate about and enforce these regulations, certain industry participants are considering leaving the UK market due to these rules.
The Financial Conduct Authority (FCA) of the United Kingdom has been assertively emphasizing its newly established advertising guidelines for cryptocurrency companies since their announcement in June. An innovative initiative to illustrate these guidelines has taken the form of a pixelated video game-like cartoon. This minute-long animation was made available on the FCA's website as an MP4 file on December 13. Interestingly, the animation is not part of any press release but rather appears independently on their publications page, devoid of any caption or explanatory notes. The animated video is intended to show how to ascertain if crypto firms are abiding by the FCA's advertising regulations. Unlawful activities under these regulations would include proposing free gifts or referral bonuses in promotional campaigns, along with the prerequisite to visibly warn potential investors of the risk of financial loss with crypto investments. A snapshot of FCA's regulations. As the guidelines are narrated, the cartoon's main character, a cowboy, can be seen traversing a Wild West terrain on horseback. Cryptocurrency is symbolized by a gold coin dropping into a well in the cowboy's path. As infractions to the FCA's regulations are narrated, the cowboy mounts a "Wanted" poster featuring a green snake wearing a tiny hat. The FCA, however, has not responded to requests for more information about the cartoon. Since these new regulations were launched on June 8, the FCA has sent out several warnings and reminders, in addition to extending technical deadlines from October 8 to January 8, 2024. In spite of these actions, there have been reports of certain industry participants, for instance, Marinade Finance, the leading decentralized finance (DeFi) protocol on the Solana blockchain, announcing their exit from the UK market due to these regulations. Related article: Legislators' concerns and skepticism contribute to proposed cryptocurrency laws in the US.
Published At
12/14/2023 12:12:30 PM
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