UK’s FCA Mandates Compliance for Crypto Asset Firms

The Financial Conduct Authority (FCA) of the United Kingdom has announced that by October 2023, all crypto asset firms marketing to users in the country must comply with its financial promotion regime.

The Financial Conduct Authority (FCA) of the United Kingdom has announced that by October 2023, all crypto asset firms marketing to users in the country must comply with its financial promotion regime.

In letters dated July 4, the FCA stated that as of October 8, U.K.-based businesses would only have “four routes to lawfully communicate crypto asset promotions” to comply with the financial watchdog’s regime.

These legal avenues included having an authorized party approve or communicate a promotion, having a promotion created by a business registered with the FCA, or having a promotion exempt under the Financial Services and Markets Act of the United Kingdom.

According to the financial regulator, promotions included “websites, mobile apps, social media posts, and online advertising” that were “capable of having an effect in the UK” and were not limited to businesses based in the nation.

In a July 4 LinkedIn post, Jayson Probin, crypto financial promotions lead at the FCA, suggested that noncompliance could result in criminal charges.

The FCA notice stated, “We will take strong action against those illegally marketing to U.K. consumers.”

“This may include, but is not limited to, placing companies on our warning list and requesting the removal of infringing websites, social media accounts, apps, and other promotional materials, as well as taking legal action.”

The FCA first announced the October deadline on June 8, recommending that crypto firms adopt a marketing strategy that provides customers with a “cooling-off period” to consider the risks associated with investing in digital assets.

The FCA stated that it could take up to three months to review an application after firms submit the required information for registration.

To “carry out crypto asset activities” in the United Kingdom, companies must register with the FCA and comply with the regulator’s marketing regime.

At the time of publication, the FCA included Bitstamp, Revolt, MoonPay, and Galaxy Digital UK among the 42 registered crypto firms in compliance with its requirements.