This article has been republished with permission from Binance News.
According to Cointelegraph, the United Kingdom’s Financial Conduct Authority (FCA) has reiterated its warning for crypto asset firms marketing to users in the country to comply with rules going into effect in October 2023. However, the FCA has added that companies could have ‘more time to implement certain changes’. In a September 7 notice, the FCA stated that crypto firms operating in the UK could have until January 8, 2024, to address technical issues related to its financial promotions regime if granted approval. The financial watchdog announced the rules aimed at curbing aggressive marketing by crypto firms in June, requiring companies to provide ‘clear, fair and not misleading’ ads or risk criminal charges.
FCA consumer investments director Lucy Castledine emphasized that crypto firms must market to UK consumers clearly, fairly, and honestly, and provide risk warnings people understand. The FCA clarified that promotions falling under the compliance regime include websites, mobile apps, social media posts, and online advertising, which are ‘capable of having an effect in the UK’ and not limited to firms based in the country. The FCA warned that it could pursue ‘robust action’ against firms, including adding company names to a warning list and requesting the removal of social media accounts and websites.
The modification of the enforcement rules came in response to crypto firms ‘not sufficiently considering how certain rules apply to the specifics of the crypto asset services they provide’ as well as significant changes required to be in compliance. Only firms granted approval will have until January 8, 2024, while others face an October 8, 2023 deadline. In addition to complying with the FCA’s marketing regime, companies must register with the regulator to ‘carry out crypto asset activities’ in the United Kingdom. As of now, the FCA lists 42 registered crypto firms in compliance with its requirements.