The FCA’s New Rules on Crypto Asset Promotions
The Financial Conduct Authority (FCA) has issued a warning to firms marketing crypto-assets to UK customers to ensure compliance with the new financial promotions regime. Failure to comply could result in criminal charges. This applies not only to UK firms but also overseas firms marketing their products to UK customers. The FCA’s aim is to give people the time and information necessary to make an informed choice when buying crypto-assets, as research shows many regret making hasty decisions.
Key Points:
- FCA’s order is effective from 8 October and applies to both UK and overseas firms.
- Firms that don’t comply may face criminal charges.
- The FCA wants to ensure people have the right risk warnings and information before buying crypto-assets.
- The requirements for promoting crypto-assets in the UK include four legal methods.
- Registration with the FCA involves a stringent application process, registration fee, and waiting period.
Hot Take:
The FCA’s new rules on crypto asset promotions are a significant step towards protecting consumers and ensuring they have the necessary information to make informed decisions. By requiring compliance and providing clear guidelines, the FCA aims to prevent hasty decisions and potential regrets. This move also highlights the growing importance and scrutiny of the crypto industry, signaling that regulatory authorities are taking action to establish a safer environment for investors.
By
By
By
By