UK FCA: Starting October 8, crypto companies will only have four legal ways to promote crypto assets

Odaily星球日报 · 2023-07-05T00:53:02.000Z

Odaily Planet Daily News The British Financial Conduct Authority (FCA) announced that all crypto asset companies marketing to users in the country must comply with its financial promotions (promotions) system by October 2023. In a July 4 letter, the FCA stated that from October 8, companies operating in the UK will have only four legal ways to promote crypto assets in order to comply with the FCA’s regime. These legal avenues include having an authorized party approve or communicate a promotion, a promotion created by a business registered with the FCA, or a promotion that qualifies for an exemption under the UK’s Financial Services and Markets Act. According to the FCA, promotional activities include "websites, mobile apps, social media posts and online advertising" that are "capable of having an impact in the UK" and are not limited to UK-based companies. Jayson Probin, the FCA’s head of crypto-financial promotion, said in a July 4 LinkedIn post that companies that don’t comply could be subject to criminal charges. (Cointelegraph) Previously on June 9, Matthew Long, head of payments and digital assets at the UK FCA, said that after the FCA’s new regulations take effect, it will be prohibited to promote investment in digital assets by giving away free NFTs or cryptocurrencies through airdrops. These free NFTs and airdrops may lead consumers to purchase cryptocurrencies that they realize “may be problematic later.” Crypto airdrops and NFTs themselves will not be banned, just promotions involving airdrops. The UK’s strict rules on cryptocurrency financial promotions will come into effect on October 8, according to a document published by the FCA on Thursday. Under the rules, cryptocurrencies will be classified as a "restricted mass market investment" and cryptocurrency ads will be required to have clear warnings about the risks. What’s more, encouraging the public to invest in cryptocurrencies will be prohibited.

Odaily Planet Daily News: The Financial Conduct Authority (FCA) of the United Kingdom announced that all crypto asset companies that market to users in the country must comply with its financial promotions regime by October 2023. The FCA stated in a letter on July 4 that from October 8, companies operating in the UK will have only four legal ways to promote crypto assets in order to comply with the FCA's regime. These legal ways include having authorized parties approve or communicate promotions, creating promotions by businesses registered with the FCA, or promotions that are exempted from the UK Financial Services and Markets Act. According to the FCA, promotions include "websites, mobile applications, social media posts and online advertisements" that are "capable of having an impact in the UK" and are not limited to companies headquartered in the UK. Jayson Probin, head of crypto financial promotion at the FCA, said in a LinkedIn post on July 4 that companies that fail to comply may be subject to criminal charges. (Cointelegraph) Earlier on June 9, Matthew Long, head of payments and digital assets at the UK FCA, said that after the FCA's new regulations come into effect, it will be prohibited to promote investment in digital assets by giving away free NFTs or cryptocurrencies through airdrops. These free NFTs and airdrops could lead consumers to buy cryptocurrencies that they realize "may be problematic later." Crypto airdrops and NFTs themselves will not be banned, only promotions involving airdrops. According to a document released by the FCA on Thursday, the UK's strict rules for financial promotions of cryptocurrencies will come into effect on October 8. Under these rules, cryptocurrencies will be classified as "restricted mass market investments" and cryptocurrency ads will be required to have clear risk warnings. More importantly, it will be prohibited to encourage the public to invest in cryptocurrencies.