HomeDIGITAL ASSETS REGULATORYregulation uk newsTips for cryptocurrency companies on adhering to marketing regulations

Tips for cryptocurrency companies on adhering to marketing regulations

The Financial Conduct Authority (FCA) has published guidance to support cryptocurrency firms in complying with new marketing rules. The guidance also outlines how authorized firms should apply the Consumer Duty to their marketing activities. Lucy Castledine, Director of Consumer Investments at the FCA, emphasized the importance of industry input in developing the guidance. The FCA will continue to engage with firms and monitor the evolving cryptoasset sector and regulatory landscape. The FCA has previously provided examples of good and poor marketing practices and reminds consumers that cryptoassets are high-risk investments. Consumers are advised to check the Warning List before investing in cryptoassets. The FCA has offered flexibility to registered or authorized cryptoasset firms to implement certain rules by January 8, 2024. All other measures of the financial promotions regime came into effect on October 8, 2023. Firms promoting cryptoassets to retail consumers in the UK must be authorized or registered by the FCA or have their marketing approved by an authorized firm. The FCA has been working closely with the government and international counterparts to develop the rules on promoting cryptoassets. The FCA has issued warnings and alerts to firms regarding compliance with the new rules. Additionally, the FCA plans to publish a Discussion Paper on regulating stablecoins for use in payments in the UK and encourages stakeholders to engage with it.

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