FCA called the deadline for the introduction of rules for advertising cryptocurrencies

The UK Financial Conduct Authority (FCA) has issued a warning to crypto industry participants about the need to comply with the regime for promotions, which will come into force on October 8, 2023.

The regulator recalled that violators may face criminal liability, including fines and a prison term of up to two years.

For crypto companies, including those based abroad, the promotion will be legal if its organizer:

• is an FCA-registered market participant;
• received approval from a similar firm;
• filed an application with the FCA Department of Money Laundering and Terrorist Financing;
• complies with the exceptions provided for by the Financial Services and Markets Act.

Marketing campaigns in general must comply with the regime applicable to promoters of traditional finance services. It provides, among other things, “specific risk warnings” and the presence of safety features for inexperienced investors, such as a 24-hour “cooling off period”.

The FCA expects crypto companies to “clearly and clearly” inform consumers about their offers, as well as the termination of services.

Recall that in May, the UK authorities warned that, as part of the fight against fraud and cybercrime, they would ban cold calls used in the sale of financial products, including digital assets.

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