The UK’s Financial Conduct Authority (FCA) has taken action against over 200 crypto firms for alleged violations of promotional rules. Discover the key issues and measures taken to protect consumers from risky crypto promotions.
The Financial Conduct Authority (FCA) in the UK has issued more than 200 alerts, targeting companies that were allegedly involved in the illegal promotion of crypto assets to British consumers. These actions come in the wake of stricter marketing rules imposed earlier this month. According to the new regulations, businesses promoting crypto assets in the UK must register with the FCA, obtain authorization, or work with authorized firms to approve marketing materials. This requirement, introduced in June, was enforced on October 8.
The FCA has identified three common issues with crypto promotions. These include failing to highlight the associated risks, making risk warnings less visible, and not providing adequate information about the risks of specific products. The regulator has emphasized its commitment to taking robust action against non-compliant firms to protect consumers.
In response to this, the FCA has also issued 221 alerts cautioning consumers about such companies. The agency expects authorized firms responsible for approving crypto asset promotions to fulfill their regulatory obligations seriously. Non-compliance could lead to restrictions, as seen in the case of Rebuildingsociety.com, which had its approvals for crypto business promotions withdrawn after its partnership with Binance.