United Kingdom: Issued notice regarding the application of financial promotion order to cryptoassets

On 4 July 2023, the Financial Conduct Authority (FCA) issued a notice to cryptoasset firms outlining the new rules for financial promotions related to crypto-assets, which will take effect from 8 October 2023 and will apply to all firms marketing cryptoassets to UK consumers regardless of whether the firm is based overseas or what technology is used to make the promotion. Notably, the notice outlines the four routes to lawfully communicating cryptoasset promotions to UK consumers: 1) the promotion should be communicated by an FCA authorised person, 2) the promotion should be made by an unauthorised person but approved by an FCA authorised person, 3) the promotion should be communicated by a cryptoasset business registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs), or 4) the promotion otherwise complies with the conditions of an exemption in the Financial Promotion Order.