The United Kingdom’s stance on crypto advertising has been marked by imposing strict and regulations. Now they want to ensure compliance within the sector.
The Financial Conduct Authority (FCA) in the UK has adopted a firm position by introducing stringent rules aimed at curbing aggressive marketing practices to protect. consumers.
FCA goes easy this time
The FCA has released “finalized non-handbook guidance” for crypto firms to address the compliance issues surrounding crypto promotion. Their efforts are aimed at aligning these guidelines with existing regulations for high-risk investments. It demonstrates a supportive stance towards the crypto industry.
Lucy Castledine, FCA director of consumer investments, emphasized the need for specific guidance for crypto firms.
we’ve engaged extensively with the industry and designed this Guidance to specifically support crypto firms complying
Many market players have chosen to exit the UK despite repeated warnings and deadline extensions by the FCA since the new rules were introduced on June 8. It is simple, they do not like the regulations.
However, compliance is low and has prompted the need for additional guidance. The FCA wants crypto advertisers to be “clear, fair, and not misleading.”
The 32-page guidance document incorporates a new “secondary international competitiveness objective” while addressing domestic expectations. It does not introduce new rules. The guidance highlights key legal requirements to ensure clarity for firms.
UK’s Travel rule
The UK implemented the Financial Action Task Force’s Travel Rule on September 1 to regulate the crypto industry more efficiently. This rule mandates that crypto companies should collect information about all parties involved in transactions.
In 2024, legislation concerning stablecoins is also expected to be introduced in the Parliament This latest move by the FCA has underscored its commitment to balance the interests of the crypto industry with regulatory oversight. However, non-compliant companies may face criminal charges since deadline extension benefit is only good for firms requiring approval.