According to reports on October 9, Coinbase and OKX have partnered with crypto startup Archax to obtain approval for financial promotions. Meanwhile, Binance said it has partnered with P2P lending company Rebuilding Society. The arrangements are expected to allow exchanges to continue to serve UK clients from overseas despite new marketing rules from the Financial Conduct Authority (FCA) that have just come into effect (which include a cooling-off period for first-time investors).
The FCA’s new regime for the financial promotion of crypto-assets comes into effect on October 8, with the new rules applying to cryptocurrency promotions across all forms of media, from websites and social media to online advertising. To comply with regulations, unregistered crypto-asset companies have four ways to legally advertise crypto-asset promotions within the UK. The first way is for FCA authorized personnel to communicate promotional information. The second is that financial promotions are approved by the authorized person. The third method, used by Coinbase, OKX and Binance, is promoted by cryptocurrency companies registered under FCA anti-money laundering regulations. The fourth way is that promotions that meet the exemptions in the Financial Promotions Order are deemed to be lawful. The regulator said failure to comply with the new financial promotions code would constitute a criminal offense punishable by up to two years in prison, an unlimited fine, or both.
The FCA’s new regime for the financial promotion of crypto-assets comes into effect on October 8, with the new rules applying to cryptocurrency promotions across all forms of media, from websites and social media to online advertising. To comply with regulations, unregistered crypto-asset companies have four ways to legally advertise crypto-asset promotions within the UK. The first way is for FCA authorized personnel to communicate promotional information. The second is that financial promotions are approved by the authorized person. The third method, used by Coinbase, OKX and Binance, is promoted by cryptocurrency companies registered under FCA anti-money laundering regulations. The fourth way is that promotions that meet the exemptions in the Financial Promotions Order are deemed to be lawful. The regulator said failure to comply with the new financial promotions code would constitute a criminal offense punishable by up to two years in prison, an unlimited fine, or both.