UK Financial Watchdog Warns Crypto Firms to Comply with Marketing Regulations
Summary:
The UK's Financial Conduct Authority (FCA) has warned crypto asset firms marketing in the country to comply with regulations by October 2023. However, companies may be granted more time to implement specific changes. The FCA will take action against non-compliant firms, including adding them to a warning list and requesting the removal of social media accounts and websites. Firms must provide clear and fair advertisements to UK consumers, along with understandable risk warnings. Registration with the FCA is also mandatory for crypto firms operating in the UK.
The Financial Conduct Authority (FCA) of the United Kingdom has reiterated its warning to all crypto asset companies that are marketing their services to users within the country, stating that they must comply with the rules set to take effect in October 2023. However, the FCA added that these companies may be given "more time to implement certain changes." The FCA stated in a notice on September 7 that if granted approval, crypto firms operating in the UK could have until January 8, 2024 to address technical issues related to the financial promotions regime. This regime was introduced by the FCA in June to curb aggressive marketing by crypto firms, with companies required to provide advertisements that are "clear, fair, and not misleading" to avoid criminal charges. The FCA Consumer Investments Director, Lucy Castledine, emphasized that crypto firms must market to UK consumers in a clear, fair, and honest manner, while also providing risk warnings that people can understand. The FCA also highlighted that promotions falling under the compliance regime include websites, mobile apps, social media posts, and online advertising that can have an impact in the UK, regardless of where the firms are based. The FCA warned that it could take strong action against non-compliant firms, including adding their names to a warning list and requesting the removal of social media accounts and websites. The modification of the enforcement rules was made in response to crypto firms not fully considering how the rules apply to their specific services and the significant changes required to ensure compliance. Only approved firms will have until January 8 to comply, while others face an October 8 deadline. Alongside complying with the FCA's marketing regime, companies must also register with the regulator to conduct crypto asset activities within the UK. Currently, there are 42 registered crypto firms listed by the FCA that are in compliance with its requirements.
Published At
9/7/2023 5:29:44 PM
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