- The FCA discovered over 200 rule violations little over two weeks after rule implementation.
- In June of 2023, the FCA made an announcement on the introduction of new rules.
The UK’s financial watchdog, the Financial Conduct Authority (FCA), has issued fresh guidelines for cryptocurrency companies that promote cryptocurrency services. In October 2023, the FCA implemented laws regarding the marketing of cryptocurrencies and has since been assisting the sector in meeting these requirements.
The authority looked at how businesses were putting the rules for advertising crypto services into action. It picked businesses that met the criteria, contacted them for information, and even paid them a visit.
Stringent Compliance
The Financial Conduct Authority (FCA) was interested in hearing how businesses were handling the following: the 24-hour cooling-off period; customer classification; determining whether an investment was suitable; maintaining records; and doing due diligence on cryptocurrency assets. They classified their results as either excellent or bad practices.
Moreover, most of the suggestions made on the subjects were simple. Also, some of the suggestions had greater weight. According to the evaluation, several companies’ due diligence was too concerned with determining if the cryptocurrency constituted a security in other countries, rather than being adapted to meet the needs of UK regulators.
In June of 2023, the FCA made an announcement on the introduction of new rules in October of the same year. Regulated in August 2022, they were to supersede such regulations. The FCA anticipated that not all businesses will be in compliance by October. And extended the deadline for others until January 8, 2024.
The FCA discovered over 200 rule violations little over two weeks after the promotional regulations were implemented, according to the statement. After its banking partner was subject to limitations, even Binance had compliance challenges.
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