Confusion Over UK Crypto Asset Promotion Rules
New rules for promoting crypto assets in the United Kingdom have caused confusion and a lack of compliance among crypto firms. In response, the Financial Conduct Authority (FCA) has released additional guidance to help these firms adhere to the regulations.
The FCA recently issued “finalized non-handbook guidance” on compliance with the rules for crypto firms. The regulatory agency also provided feedback on industry responses. FCA director Lucy Castledine stated that the guidance was designed to support crypto firms in complying with the new rules, which are aligned with existing rules for high-risk investments.
FCA’s Supportive Stance
The FCA has been supportive of the crypto industry and has issued warnings and reminders since the rules were published. It has even extended some deadlines until January 2024. Despite these measures, several market players have left the UK due to the regulations, and compliance has been poor.
The FCA’s latest 32-page guidance does not impose new obligations on crypto firms but aims to address both domestic behavior expectations and a new international competitiveness objective.
Hot Take: Lack of Compliance and Confusion Surrounding UK Crypto Asset Promotion Rules
The introduction of new rules for promoting crypto assets in the UK has led to confusion and a low level of compliance among crypto firms. To address this issue, the Financial Conduct Authority (FCA) has released additional guidance for these firms. The FCA’s supportive approach is evident through its warnings and deadline extensions. However, despite these efforts, compliance remains poor, leading to some market players exiting the UK. The FCA’s latest guidance aims to provide clarity and support for crypto firms while aligning with existing high-risk investment rules. Overall, greater compliance and understanding of the regulations are crucial for the crypto industry’s success in the UK.
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