The Financial Conduct Authority (FCA) in the UK has issued 146 alerts on the first day of the new crypto asset promotions regime. The UK government is actively welcoming crypto companies to establish their presence in the country, but these companies must adhere to strict regulations. The new crypto asset promotions regime serves as a warning to the public and businesses about illegal promotions in the crypto sector. Consumers are advised to check the FCA’s “Warning List” before making any crypto investments. This list helps identify firms whose promotions may be breaking the law, allowing consumers to make informed decisions. The FCA plans to update the list and adopt a risk-based approach, prioritizing high-risk crypto companies and those that do not comply with the regime or engage with the regulator constructively.
To comply with the new regime, the FCA outlines four possible routes for crypto companies to promote their offerings. They can either have an authorized person communicate or approve the promotion, or a crypto firm registered under the Money Laundering Regulations (MLR) can communicate the promotion. Additionally, promotions must comply with the conditions of an exemption in the Financial Promotion Order. The FCA has been warning crypto companies about these changes since February and has provided guidance to help companies prepare their compliance strategies. Non-compliance will result in robust actions by the FCA to remove illegal content and protect consumers.
#crypto #FCA #regulations #cryptocurrency #promotions #compliance #UK #investments
Image: https://weeklyfinancenews.online/wp-content/uploads/2023/08/bitcoin13.png
Comments are closed.