United Kingdom: Implemented Financial Promotion Rules for Crypto Assets
Description
Implemented Financial Promotion Rules for Crypto Assets
On 8 October 2023, the Financial Conduct Authority (FCA) advertising rules for crypto assets were implemented. The new rules aim to regulate how cryptoassets can be promoted to UK consumers, reduce and prevent potential harm to consumers from investing in cryptoassets. The new rules would allow cryptoassets to be mass marketed to UK consumers subject to certain restrictions, including clear risk warnings and banning inappropriate incentives to invest. Furthermore, the rules include client categorisation requirements and appropriateness assessments. In particular, there are four routes to lawfully communicating cryptoasset promotions to UK consumers. However, for certain exemptions, firms can apply for a delayed implementation, granting them a grace period until 8 January 2024. These exemptions include the 24-hour cooling-off period, the client appropriateness testing, and the client categorisation.
Original source