- Crypto marketing must originate from a company that is already registered with FCA.
- The United Kingdom released a slew of new regulations at the beginning of this month.
The Financial Conduct Authority (FCA) has warned that businesses that promote cryptocurrencies outside of one of four approved channels might be subject to criminal penalties including up to two years of jail time.
Any advertising under the new regulations must be produced by or with the consent of an individual authorized by the Financial Conduct Authority (FCA). This, however, is contingent on the new rules being passed by the UK Parliament.
If none of these options is feasible. Crypto marketing must originate from a company that is already registered with the FCA. And conforms to the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017. Firms require a “bona fide” base of operations in the UK in order to comply with these rules. The Financial Promotion Order does not prohibit advertising by companies that fall under the fourth and final classification.
Recent Crackdown on Crypto Sector
Crypto advertising violates section 21 of the Financial Services and Markets Act (FSMA) of 2000 if any of the aforementioned conditions are not met. The Financial Conduct Authority (FCA) has restated its view that any cryptocurrency asset is “high risk.” Citing the failure of major centralized exchanges in late 2022 as proof.
Furthermore, authorities in the United Kingdom have been cracking down on cryptocurrency advertisements for quite some time. This development coincides with a period of significant change in the regulations governing the UK cryptocurrency business.
Moreover, the United Kingdom released a slew of new regulations at the beginning of this month. Including guidelines for crypto custodians and the authorization of cryptocurrency exchanges.
