The new crypto marketing rules have been in effect in the UK for a month.
Many firms still fail to meet the requirements, so the FCA is publishing new guidance.
The
Financial Conduct Authority (FCA) has updated its guidance for cryptoasset
firms, following recent legislative changes that bring crypto promotions
targeting UK consumers under its oversight. The new rules aim to enhance
consumer understanding of crypto investments and the associated risks. Particularly
given that when the regulations came into force, more than 200 crypto firms did
not comply with the fundamental requirements.
UK Crypto Firms Receive
New Marketing Compliance Guidance from FCA
Lucy
Castledine, the FCA's Director of Consumer Investments, emphasized the
alignment of the new crypto marketing rules with those for other high-risk
investments. The FCA has proactively sought industry feedback to refine these
rules and the accompanying guidance, acknowledging the valuable insights gained
during the consultation phase.
“We
continuously seek industry’s input to get rules, their implementation, and the
support we offer right. This guidance is no exception and we’re grateful for
all the input we received,” Castledine added.
Crypto Evolves Quickly
The FCA
acknowledged the rapid evolution of the crypto sector and the global regulatory
environment, committing to ongoing engagement with industry players and
periodic guidance reviews. The FCA had previously released examples to
distinguish between good and poor marketing practices in preparation for the
new financial promotion rules, which have been in effect for almost a month.
Despite introducing
these rules, the FCA maintains its stance on the high-risk nature of crypto assets,
cautioning investors to be ready for the possibility of total investment loss.
The FCA reminded us that its “Warning List” serves as a resource for consumers to
identify unauthorized firms and make more informed decisions regarding crypto
investments.
The FCA has
provided a modification by consent, offering registered or authorized
cryptoasset firms a transitional period to implement certain technical aspects
of the new rules. Firms have until 8 January 2024 to incorporate features such
as the 24-hour cooling period, client appropriateness testing, and client
categorization. All other aspects of the financial promotions regime have been
effective since 8 October 2023.
Firms
promoting cryptoassets in the UK must now be authorized or registered by the
FCA or have their marketing approved by an authorized firm. This alignment with
the rules for other high-risk investments follows extensive collaboration with
the government, international counterparts, and the industry.
Looking
ahead, the FCA plans to release a Discussion Paper on the regulation of
stablecoins for payments in the UK, inviting stakeholders to participate in the
discourse. This move underscores the FCA's commitment to shaping a regulatory
framework that keeps pace with the dynamic crypto market.
The
Financial Conduct Authority (FCA) has updated its guidance for cryptoasset
firms, following recent legislative changes that bring crypto promotions
targeting UK consumers under its oversight. The new rules aim to enhance
consumer understanding of crypto investments and the associated risks. Particularly
given that when the regulations came into force, more than 200 crypto firms did
not comply with the fundamental requirements.
UK Crypto Firms Receive
New Marketing Compliance Guidance from FCA
Lucy
Castledine, the FCA's Director of Consumer Investments, emphasized the
alignment of the new crypto marketing rules with those for other high-risk
investments. The FCA has proactively sought industry feedback to refine these
rules and the accompanying guidance, acknowledging the valuable insights gained
during the consultation phase.
“We
continuously seek industry’s input to get rules, their implementation, and the
support we offer right. This guidance is no exception and we’re grateful for
all the input we received,” Castledine added.
Crypto Evolves Quickly
The FCA
acknowledged the rapid evolution of the crypto sector and the global regulatory
environment, committing to ongoing engagement with industry players and
periodic guidance reviews. The FCA had previously released examples to
distinguish between good and poor marketing practices in preparation for the
new financial promotion rules, which have been in effect for almost a month.
Despite introducing
these rules, the FCA maintains its stance on the high-risk nature of crypto assets,
cautioning investors to be ready for the possibility of total investment loss.
The FCA reminded us that its “Warning List” serves as a resource for consumers to
identify unauthorized firms and make more informed decisions regarding crypto
investments.
The FCA has
provided a modification by consent, offering registered or authorized
cryptoasset firms a transitional period to implement certain technical aspects
of the new rules. Firms have until 8 January 2024 to incorporate features such
as the 24-hour cooling period, client appropriateness testing, and client
categorization. All other aspects of the financial promotions regime have been
effective since 8 October 2023.
Firms
promoting cryptoassets in the UK must now be authorized or registered by the
FCA or have their marketing approved by an authorized firm. This alignment with
the rules for other high-risk investments follows extensive collaboration with
the government, international counterparts, and the industry.
Looking
ahead, the FCA plans to release a Discussion Paper on the regulation of
stablecoins for payments in the UK, inviting stakeholders to participate in the
discourse. This move underscores the FCA's commitment to shaping a regulatory
framework that keeps pace with the dynamic crypto market.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Lebowa Capital's Jimmy Moyaha at an FMLS:24 panel discussion explaining the impact of news on trading.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets.
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
Doo Prime's Fraser Nelson is explaining the challenges of liquidity in different markets while participating in a panel discussion on "How to Trade the News."
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
FMLS:24 exhibition venue is crowded on the second day.
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Panel Discussion on "Regulation, Trust, and the Future of Trading in Africa"
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24
Experts discuss the topic "Regulation, Trust, and the Future of Trading in Africa" at FMLS:24