The Financial Conduct Authority (FCA) has revealed that it issued 146 alerts to firms promoting crypto within 24 hours of new rules governing the marketing of such assets coming into force.
The FCA introduced more stringent rules governing the marketing of cryptoasset products on 8 October 2023 in a bid to make the promotion of such products clearer and more accurate.
Within 24 hours of introducing the new regime, the FCA said it had issued almost 150 warnings to firms that had failed to comply with the new rules.
Since 8 October 2023, firms wishing to promote cryptoassets in the UK must, by law, be authorised or registered by the FCA or have their marketing approved by an authorised firm. Under the new rules, promotions must also be clear, fair and not misleading, labelled with prominent risk warnings and must not inappropriately incentivise people to invest.
These changes bring cryptoassets in line with other high-risk investments.
The FCA has urged consumers to check the warning list before making any investment in crypto. The list will be continually updated as the regulator identifies firms which may be illegally communicating cryptoasset promotions and are failing to engage constructively.
The financial regulator has also encouraged social media platforms, app stores, search engines, domain name registrars and payments firms to consider the alerts to help play their part in protecting UK consumers from illegal promotions.
The FCA has warned firms since February this year to get ready for the changes. The regulator also published a letter at the end of September urging firms to comply and to urgently consider their position if they believed they would miss the October deadline.
The new financial promotion rules for cryptoasset promotions support the FCA’s three core commitments in the 2023/24 Business Plan to reduce and prevent serious harm, set and test higher standards and promote competition and positive change.
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