UK’s FCA Cracks Down on Crypto Promotions: 146 Warnings on Day One of New Regulations

On the first day of the new regulations governing the promotion of crypto investments in the UK, the Financial Conduct Authority (FCA) issued a total of 146 warnings concerning crypto asset promotions. These rules, effective since October 8, 2023, mandate that companies intending to promote cryptoassets in the UK must be authorized or registered by the FCA or have their marketing endorsed by an authorized entity. Furthermore, promotional materials must adhere to FCA guidelines, ensuring they are transparent, fair, and devoid of misleading information. They should also prominently feature risk warnings and not unduly encourage individuals to invest.

To assist consumers in identifying potential violations of the law in firms’ promotions, the FCA has introduced a ‘Warning List.’ In response to the imminent deadline, the FCA sent a stern warning to unregistered foreign cryptoasset firms, threatening penalties and imprisonment for non-compliance with the new regulations.

In a letter addressed to crypto firms marketing to UK customers, the FCA expressed frustration with the lack of cooperation from overseas companies. The letter, titled ‘final warning,’ highlighted the disappointing response from these firms. The FCA revealed that many of these companies had been unresponsive, with just 24 out of over 150 firms participating in a survey. The FCA cautioned that failure to engage would constitute a breach of the Financial Services and Markets Act 2000, potentially resulting in a criminal offense with penalties of up to two years in prison, unlimited fines, or both. The FCA pledged to take action against firms that unlawfully promote to UK consumers, including adding them to the Warning List and taking measures to remove or block illicit financial promotions on platforms such as websites, social media accounts, and apps.