- Oct. 8 marked the beginning of the promotional guidelines set forth by the FCA.
- Either registration with the FCA or approval from an authorized business is required.
The financial watchdog in the United Kingdom warned 450 businesses in the last quarter of 2023 for unlawfully marketing cryptocurrency and urged those with the authority to do business with them to fulfill their obligations.
Oct. 8 marked the beginning of the promotional guidelines set forth by the Financial Conduct Authority (FCA). According to a report that was released on Wednesday, the notifications were sent out between that time and December 31.
Stringent Promotional Guidelines
Crypto businesses need to either register with the appropriate authorities or have their advertising approved by an authorized third party before they can run ads. Companies are obligated to provide risk warnings and first-time customers are given a 24-hour chance to reconsider, according to the regulations.
Moreover, Binance, the biggest cryptocurrency exchange, was one of many businesses forced to temporarily halt operations in the United Kingdom. Rebuildingsociety.com, Binance’s promotional approver, was informed it could not authorize crypto advertisements, and the exchange has had trouble finding an alternative approver.
Furthermore, in 2024, the Financial Conduct Authority’s crypto registry welcomed its first business, the U.K. affiliate of payments infrastructure provider Banxa (BNXA), on Friday. With their name added to the list, BNXA UK VASP may now provide cryptocurrency services to customers in the United Kingdom.
For cryptocurrency exchanges like Binance and OKX, who do not have FCA crypto permission, Banxa processes fiat currency transactions and verifies users’ identities. Either registration with the FCA or approval from an authorized business is required for companies intending to send promotions to U.K. clients.
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