The Financial Conduct Authority (FCA) of the United Kingdom has issued a statement declaring that all cryptocurrency firms targeting users in the country must adhere to its financial promotions regulations by October 2023.
In correspondence dated July 4, the FCA outlined that from October 8 onwards, companies operating within the UK have only four legal options for communicating crypto promotions following the regulatory framework. These options include obtaining approval or communication of promotions from an authorised entity, having a promotion created by a business registered with the FCA, or qualifying for exemption under the UK’s Financial Services and Markets Act.
The FCA clarified that promotions encompass platforms such as websites, mobile applications, social media posts, and online advertisements and are not limited to companies based in the UK. Jayson Probin, the FCA’s lead on crypto financial promotions, warned in a LinkedIn post on July 4 that failure to comply could result in criminal charges.
The FCA emphasised that it will take robust action against those unlawfully promoting to UK consumers. Such measures may include listing offending firms on their warning list, requesting the removal of websites, social media accounts, apps, and any other non-compliant promotions, and pursuing enforcement actions.
On June 8, the FCA initially announced the October deadline, urging cryptocurrency firms to adopt marketing approaches that allow customers a “cooling-off period” to assess the risks associated with digital asset investments. The FCA stated that it could take up to three months to process registration applications once the necessary information is submitted.
In addition to complying with the FCA’s marketing regulations, companies must register with the authority to engage in crypto asset activities within the UK. As of the publication date, 42 crypto firms, including Bitstamp, Revolut, MoonPay, and Galaxy Digital UK, have been listed by the FCA as compliant with its requirements.
