Crypto Companies Must Prepare to Comply: UK Financial Regulator

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The UK’s Financial Conduct Authority (FCA) has announced that companies promoting cryptocurrencies to UK customers must comply with their existing financial promotion regime by October 8, 2023.

According to today’s bulletin, the financial promotion is broad and technology-neutral, but applies to websites, social media posts, mobile apps and online advertising.

Today’s announcement says businesses will need to apply for registration and pay a fee if approved.

The financial regulator is also asking companies to clarify what actions they are taking regarding the notice. Companies have until August 4 to respond to the request, although the scheme does not come into force until later this year.

The FCA said it would not only target entities operating in the UK, but also overseas, saying that if a company’s marketing program had any effect on UK customers, it would be their responsibility. skill.

There will be four legal avenues for communicating financial promotions, which include Anti-Money Laundering and Counter-Terrorist Financing (AML/KYC), and other important information regarding the transfer of funds via cryptocurrency.

Failure to comply, according to the FCA, can result in criminal charges.

Early last month, UK authorities launched a consultation process to provide the necessary guidelines for companies operating financial promotions of crypto assets.

Seeking to gather information from any of the market players in the industry, the objective is to assess the requirements of a company to offer promotions. This process will end on August 10 of this year.

The UK has made long strides in establishing a clear set of rules for cryptocurrency companies, including a new law regulating crypto trading.

Sarah Pritchard, FCA’s executive director of oversight, policy and competition, Markets, said earlier this year that the FCA would be on the lookout for firms that failed to comply with these rules. And if necessary, we will seek to take enforcement action.”

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