UK Crypto Firms May Get Extra Time to Implement Marketing Restrictions

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This article has been republished with permission from Binance News.

According to CoinDesk, the United Kingdom’s Financial Conduct Authority (FCA) announced on Thursday that crypto firms in the country may be given an additional three months to implement new rules designed to curb aggressive marketing. The regulations, which include bans on inappropriate incentives, were initially set to take effect on October 8, 2021. However, the FCA stated that the deadline could be extended until January 2024 for compliant firms that need more time to develop the proper technical setup.

Firms must apply for this flexibility, which would then allow them to make the necessary back-office changes. The FCA emphasized that it still plans to take enforcement action against overseas or unregulated firms that continue to unlawfully market to UK consumers starting October 8. The new rules require crypto ads, including influencer promotions and memes, to be clear and fair. Companies are also prohibited from offering bonuses for referring friends or free airdrops, similar to other high-risk financial products regulated by the FCA.

Industry representatives have expressed concerns that these strict measures could drive businesses out of the UK, despite the government’s stated goal of turning the country into a crypto hub.



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