UK Crypto Financial Promotions

The Financial Conduct Authority issued an industry-wide letter on 7 September 2023 on the incoming UK Cryptoasset Financial Promotions Regime

‍
Key Highlights:

‍

1. Authorised firms and FCA registered cryptoasset firms can apply for a 3-month dispensation in relation to complying with the Direct Offer Financial Promotions requirements.
   ‍
2. All other financial promotion rules will been forced starting 8 October 2023 and will be applicable to firms globally, irrespective of their base location.

‍

The FCA is concerned that overseas and unregulated crypto firms are failing to engage with the new rules. 
‍

The letter states "robust action" will be taken against firms illegally marketing to UK consumers. There are unlimited fines and criminal penalties for breach.

FCA

You can read the full press release here:

https://www.fca.org.uk/news/press-releases/fca-sets-expectations-ahead-incoming-crypto-marketing-rules

FCA letter here:

https://www.fca.org.uk/publication/correspondence/firms-preparations-comply-cryptoasset-financial-promotions-regime.pdf

The FCA also provided feedback on good and poor practice for firms’ preparations:

https://www.fca.org.uk/publications/good-poor-practice/firms-preparations-cryptoasset-financial-promotions-regime

Action
‍

We are currently guiding a number of clients in preparation for the new regime.
 
If you're uncertain about your firm's readiness or have any questions related to the new rules, please contact us.

‍

‍