The Financial Conduct Authority (FCA) of the United Kingdom has made an announcement stating that all crypto asset firms targeting users in the country must adhere to its financial promotions regulations by October 2023.
In a series of letters dated July 4, the FCA outlined that beginning on October 8, companies operating in the UK will have four legal options to lawfully communicate promotions related to crypto assets.
These options include obtaining approval or communication from an authorized party, creating promotions through a business registered with the FCA, or ensuring that the promotion qualifies as exempt under the UK’s Financial Services and Markets Act.
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The FCA clarified that promotions encompass various forms such as websites, mobile apps, social media posts, and online advertisements.
It emphasized that these promotional activities, regardless of the company’s location, should not have a limited effect in the UK.
Jayson Probin, the crypto financial promotions lead at the FCA, warned in a LinkedIn post that non-compliance could result in criminal charges.
The FCA notice stated, “We will take robust action against persons illegally promoting to UK consumers.
This may include, but it is not limited to, placing firms on our warning list, requesting take-downs of websites, social media accounts, apps, and all other promotions that are in breach, and enforcement action.”
The FCA had initially announced the October deadline on June 8, urging crypto firms to adopt a marketing approach that allows customers a “cooling-off period” to consider the risks associated with digital asset investments.
Once firms submit the necessary registration information, the FCA estimated a processing time of up to three months to evaluate the applications.
Alongside complying with the marketing regime set by the regulator, companies must register with the FCA to engage in crypto asset activities within the United Kingdom.
As of now, the FCA has listed 42 registered crypto firms that meet its requirements, including Bitstamp, Revolt, MoonPay, and Galaxy Digital UK.
