The FCA announces upcoming financial marketing regulations for crypto businesses in the UK, which will come into force on October 8, 2023

The FCA announces upcoming financial marketing regulations for crypto businesses in the UK, which will come into force on October 8, 2023

The Financial Conduct Authority (FCA) recently published a notice to crypto businesses in the UK informing them of upcoming financial marketing regulations for digital assets. These regulations will come into force on October 8, 2023. The FCA emphasizes that these regulations apply to both domestic and international companies offering digital assets to UK residents.

The new guidelines aim to cover various platforms such as websites, mobile apps, social media and online advertising. There are four options that allow companies to comply with the regulations. You can either use an authorized person, benefit from an exemption under the Financial Services Market Act 2000, advertise through a licensed crypto company subject to the UK anti-money laundering regulations or use the exemption from the FSMA's Financial Promotion Order.

Signs of financial advertising related to investment or claims management activities conveyed as part of a business activity will be considered a violation of the new regulations. As of October 8, 2023, authorized persons or unauthorized persons are allowed to engage in crypto asset marketing with the permission of an authorized person.

This move by the FCA underlines its commitment to ensuring the integrity and security of the crypto market and protecting investors. A survey conducted recently showed a significant increase in crypto ownership in the UK. 10% of the 2,000 participants reported owning some form of cryptocurrency, and ownership quadrupled from 2021 to 2022.

With the new regulations, the FCA wants to ensure that companies offering digital assets act transparently and responsibly. By regulating the crypto market, it wants to minimize possible risks and create trust among investors.

It remains to be seen how these new regulations will impact the crypto market in the UK. However, it is clear that the FCA is keen to capitalize on the growing popularity of cryptocurrencies to protect the market and boost investor confidence.