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FCA Updates on Cryptoasset Financial Promotions
The Financial Conduct Authority (FCA) recently issued two publications that are important for businesses operating in the crypto and digital assets space.
(1) Q2 2024 Financial Promotions Data, which provides insights into the FCA’s recent enforcement actions; and
(2) Guidance on Assessing Compliance with Cryptoasset Financial Promotions Rules, which offers detailed examples of good and poor practices for cryptoasset promotions.
Our latest Client Alert summarises the FCA updates and highlights the key implications for crypto firms.
Implications for Crypto Firms
In light of the FCA’s latest updates, it is critical for firms to review their current practices and implement the necessary changes to ensure the FCA’s expectations are met. The implications for clients are significant, as non-compliance may result in regulatory action, reputational damage, and financial penalties.
The FCA’s updates serve as a stark reminder for all crypto firms to thoroughly understand and align to UK regulatory requirements, implement robust due diligence processes, and maintain oversight of their partners. We recommend clients conduct a thorough review of their processes in light of the FCA updates.
Should you require any assistance in assessing your compliance or implementing changes, please do not hesitate to contact us for guidance and support.
