The FCA identifies common issues with crypto marketing
What has happened?
In October 2023, the FCA publicised that it has been supervising crypto firms since 8 October based on the new cryptoasset financial promotion regime, designed to give consumers the right information and risk warnings. Read here for details of this.
What are the key points?
The FCA has identified three common issues with cryptoasset financial promotions. These include:
The FCA expects authorised firms approving the financial promotions of cryptoasset firms to take their regulatory obligations seriously. Where this is not happening, the regulator will take action and it has already placed restrictions on an authorised firm to restrict it from approving cryptoasset financial promotions (see details of this here).
The FCA is working with businesses including social media platforms, app stores, search engines and domain name registrars to remove or block illegal promotion. The FCA is also working with payments firms to limit UK consumer exposure to firms issuing illegal promotions. These businesses should consider the alerts issued and play their part in protecting UK consumers.
The FCA is also continuing to identify and act against firms that are illegally promoting cryptoassets to UK consumers. Since the regime went live, it has issued 221 alerts. This list will be continually updated as the FCA identifies firms that may be illegally communicating cryptoasset promotions and that are failing to engage constructively with the regulator.
How can we help you with cryptoasset compliance?
Thistle Initiatives has supported firms for over 10 years as a trusted cryptoasset compliance and regulatory advisor. In addition to assisting you as-and-when, our team of specialists can serve as your right hand in meeting and complying with FCA regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.
Are you looking for help with your crypto financial promotion arrangements, cryptoasset compliance or more general regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to email@example.com.
See also our earlier blog on this topic here.