Comply or Face Consequences: UK Crypto Marketing Deadline

Comply or Face Consequences: UK Crypto Marketing Deadline
The Financial Conduct Authority (FCA) of the United Kingdom has made an announcement stating that all cryptoasset firms targeting users in the country must adhere to the financial promotions regulations established by the FCA by October 2023.

In correspondence dated July 4, the FCA emphasized that beginning on October 8, companies operating within the UK will have four lawful options to communicate their cryptoasset promotions while complying with the regulations set by the financial regulatory body. These permissible avenues involve obtaining approval or communication of a promotion from an authorized entity, creating a promotion through a business registered with the FCA, or ensuring that the promotion qualifies for an exemption under the Financial Services and Markets Act of the UK.

The FCA stated that promotions encompass various mediums such as websites, mobile apps, social media posts, and online advertising, which have the potential to impact individuals in the UK. The regulations are not limited to firms based solely in the country. Jayson Probin, the crypto financial promotions lead at the FCA, suggested in a LinkedIn post on July 4 that failure to comply with these regulations could lead to criminal charges.

The FCA notice emphasized that strict measures would be taken against those unlawfully promoting to consumers in the UK. The actions could include, but are not restricted to, placing firms on a warning list, requesting the removal of websites, social media accounts, apps, and any other promotions that breach the regulations, as well as initiating enforcement action.

July 4 statement from FCA's Jayson Probin on marketing compliance. Source: LinkedIn

On June 8, the Financial Conduct Authority (FCA) introduced the October deadline, urging crypto firms to adopt a marketing approach that allows customers a reasonable period to evaluate the risks associated with investing in digital assets. To carry out crypto asset activities within the United Kingdom, companies are not only required to comply with the FCA's marketing regime but also register with the regulatory body. 

As of now, the FCA has listed 42 crypto firms that have successfully met its requirements, including notable names such as Bitstamp, Revolut, MoonPay, and Galaxy Digital UK. It is worth noting that the FCA may take up to three months to review and evaluate applications once the necessary information for registration has been submitted by firms.

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