The UK Financial Conduct Authority (FCA) has warned crypto asset firms that by October 2023, they must conform to the country’s financial promotion framework. The FCA’s restrictions apply to any cryptocurrency company marketing to UK users.
Starting on October 8, crypto companies in the United Kingdom will have four legal options for communicating marketing. They can get authorization from a third party, use a campaign established by an FCA-registered company, or have a promotion that is exempt from UK regulations.
Promotions include things like websites, mobile applications, and other forms of Internet advertising that might affect consumers. It makes no difference whether the companies are based in the country or not. The FCA has warned that firms that fail to comply may face sanctions.
The FCA is determined to prosecute anybody who illegally advertises crypto assets to UK consumers. This action may include adding companies to a watchlist and requesting the removal of websites and social media profiles.
NEWS: 🚨The #FCA reminds that October 2023 is the deadline for marketing compliance and all crypto companies to follow the rules or face consequences. 💼💡
— Walletor (@walletorapp) July 5, 2023
To conduct crypto asset activities in the country, companies must not only follow the FCA’s rules but also register with it. There are now 42 registered crypto companies that meet the FCA’s requirements. Bitstamp, Revolut, MoonPay, and Galaxy Digital UK are among them.
The FCA first announced the October deadline on June 8 and advised crypto businesses to use a marketing strategy that allows clients time to examine the risks. Companies must understand and follow these regulations in order to operate legally in the UK and safeguard customers.
Finally, by October 2023, crypto asset firms operating in the UK must demonstrate compliance with the FCA’s financial promotion framework. Businesses can meet the standards and remain to operate in the UK market. The Financial Conduct Authority is focused on protecting consumers while taking measures against those who do not follow the rules.