FCA’s new crypto marketing regime comes into force, regulator issues 146 alerts in first 24 hours
The UK’s Financial Conduct Authority (FCA) has issued a total of 146 alerts within the first 24 hours of its financial promotions regime for cryptoassets coming into force.
The FCA issues 146 alerts for cryptoasset promotions
As outlined in the regulator’s policy statement 23/6, the regime requires firms that promote cryptoassets, which are now classified as restricted mass market investments, to do so clearly and without misleading the consumer.
First published on 8 June and coming into effect from 8 October, the regime bans the marketing of any incentives to invest and imposes a mandate on risk warnings, appropriateness assessments and positive frictions to allow consumers to understand the information being presented to them more clearly.
The rules apply to any business or trade body that communicates cryptoasset financial promotions to consumers in the UK, and also extends to overseas firms and those that are not registered with the regulator.
In a letter delivered to firms last month in preparation for the deadline, the regulator said it was “concerned by the poor engagement from many unregistered, overseas cryptoasset firms who have UK customers on this important change”, and that the lagging levels of engagement raised “serious concerns about unregistered firms’ readiness to comply with the new regime”.
These concerns appear to have been validated by the 146 alerts the regulator issued on the first day of the regime going live, all of which it has displayed publicly via a warning list.
The action marks the regulator’s latest endeavour to improve the safety and standards of financial services in the UK, particularly in how they’re being promoted and consumed, which was a key concern raised by the Consumer Duty in July.
