Following the implementation of the Consumer Duty rules in the United Kingdom, crypto providers in the country are now required to comply with a fresh set of regulations around promotions, the deadline for which is approaching.
From 8th October, the
coverage of the UK’s Financial Services and Markets Act will be extended to “qualifying crypto assets”, requiring crypto firms to follow several sets of rules.
But, what is the definition of “qualifying crypto assets”? According to the Financial Conduct Authority (FCA ), it covers “any
cryptographically secured digital representation of value or contractual rights
that is transferable and fungible, but does not include crypto assets which meet
the definition of electronic money or an existing controlled investment.”
Although the overall rules look brief, there are many details crypto companies need to consider, otherwise they will risk committing a criminal offense.
Alexander Culley, Founder and CEO at C&G Regulatory Solutions
The
FCA supervises and enforces the implementation of the UK’s financial promotion
regime. Lucy Castledine, the Director of Consumer Investments, has warned that: “Come
8th October, we will be taking action against firms illegally
marketing to UK consumers.”
From this
date, a financial promotion pertaining to qualifying crypto assets could only be
lawfully made through one of four…
