UK financial watchdog reminds crypto firms of October deadline for marketing compliance.
The Financial Conduct Authority (FCA) of the United Kingdom has stated that all crypto asset firms targeting users in the country must adhere to its financial promotions regulations by October 2023.
In letters dated July 4, the FCA announced that starting from October 8, companies operating in the UK will have only four permissible ways to communicate crypto asset promotions in order to comply with the regulations. These legal avenues include obtaining approval or communication from an authorized party, creating a promotion through a business registered with the FCA, or having a promotion that qualifies as exempt under the UK’s Financial Services and Markets Act.
The FCA defines promotions as “websites, mobile apps, social media posts, and online advertising” that can have an impact in the UK, regardless of whether the firms are based in the country or not. Jayson Probin, the FCA’s lead on crypto financial promotions, suggested in a LinkedIn post on July 4 that failure to comply may result in criminal charges.
The FCA notice stated, “We will take strong action against individuals who illegally promote to UK consumers. This may include placing firms on our warning list, requesting the removal of websites, social media accounts, apps, and all other promotions that violate the regulations, as well as taking enforcement action.”
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The FCA initially announced the October deadline on June 8, suggesting that crypto firms adopt a marketing approach that allows customers a “cooling-off period” to consider the risks associated with investing in digital assets. Once firms submit the necessary information for registration, the FCA stated that it could take up to three months to process the application.
In addition to complying with the FCA’s marketing regulations, companies must register with the FCA to conduct crypto asset activities in the United Kingdom. As of now, the FCA has listed 42 registered crypto firms that comply with its requirements, including Bitstamp, Revolut, MoonPay, and Galaxy Digital UK.
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