Crypto Regulations in the UK
The Financial Conduct Authority (FCA) of the United Kingdom has declared that all cryptoasset firms marketing to users in the country must comply with its financial promotions regime by October 2023.
In a July 4 letter, the FCA stated that companies operating in the U.K. have only four ways to lawfully communicate cryptoasset promotions to be in compliance with the financial watchdog’s regime. These include having an authorized party approve or communicate a promotion, having a promotion created by a business registered with the FCA, or having a promotion that qualifies as exempt under the U.K.’s Financial Services and Markets Act.
The FCA’s financial promotions regime covers websites, mobile apps, social media posts, online advertising, and more, not just those based in the U.K. According to Jayson Probin, crypto financial promotions lead at the FCA, organizations that fail to comply could face criminal charges.
“We will take robust action against persons illegally promoting to U.K. consumers,” said the FCA notice. “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 crypto promotions that are in breach, and enforcement action.”
The FCA initially declared an October deadline on June 8, recommending that crypto firms adopt a method of advertising that gives customers an opportunity for “cooling-off period” to contemplate the risks of investing in digital assets. When firms submit the required data for registration, the FCA said it may take up to three months to evaluate an application.
Apart from adhering to the regulator’s promotional framework, companies must register with the FCA to “carry out crypto asset activities” in the U.K. At present, the FCA listed 42 registered crypto firms that meet its requirements, such as crypto.com, Bitstamp, Revolt, MoonPay, Voyager Crypto, and Galaxy Digital UK.
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