UK’s Financial Conduct Authority Releases New Guidelines for Crypto Firms’ Marketing of Digital Assets

The UK’s Financial Conduct Authority (FCA) is publishing new guidelines for crypto firms on how to properly market digital assets.

In a new press release, the regulatory agency unveils its updated rules for cryptocurrency businesses on the information they must provide when marketing cryptoassets.

“Following a change in legislation, crypto asset promotions targeting UK consumers now fall within our remit. We have introduced rules designed to help people better understand what they are investing in and the risks involved. »

The FCA says the aim of the new regulations is to reduce harm to consumers by fully disclosing the risks associated with trading virtual currencies, which in turn should support the long-term growth of the economy British.

“One of the key requirements of our financial promotion rules is that financial promotions must be fair, clear and not misleading[…].

[The FCA] continues to focus on our core objective of reducing harm to consumers and clarifying our expectations of businesses, to drive better compliance with applicable rules and improve overall outcomes for consumers.

These actions aim to support long-term economic growth in the UK by reducing instances of loss of confidence in financial services caused by customers not fully understanding the risk when purchasing cryptoassets. Clearer and fairer promotions will enable consumers to be better informed to make appropriate decisions aligned with their needs and risk profile. »

As Lucy Castledine, director of consumer investments at the FCA, said,

“While the new rules for businesses marketing cryptocurrencies to UK consumers are aligned with existing rules for other high-risk investments, we have engaged widely with the sector and designed this guide to specifically help businesses of cryptocurrencies to comply.

We continually seek input from the industry to ensure that the rules, their implementation and the support we provide are correct. This guide is no exception and we are grateful for all the feedback we received during the consultation period. »