United Kingdom: Published FCA guidance on Cryptoasset Financial Promotions

On 2 November 2023, the Financial Conduct Authority (FCA) published a guidance on Cryptoasset Financial Promotions to clarify the marketing rules that apply to crypto firms. Following the implementation of the Financial Promotion Rules on 8 October 2023, cryptoasset promotions now fall within the regulatory scope of the FCA. The guideline clarifies the duty to undertake extensive due diligence on the cryptoassets that are to be promoted. Furthermore, crypto asset financial promotions have to be fair, clear and not misleading. Promotions must be comprehensible and allow consumers to understand the risks involved. Information must be balanced, and providers must refrain from exaggerated claims. The FCA also published good and poor examples of firms' implementation of the new financial promotion rules.