As of 8th October 2023, all cryptoasset firms marketing to UK consumers must comply with the Financial Conduct Authority’s (FCA) financial promotions regime. This means that all promotions must be fair, clear, and not misleading, and must include specific risk warnings.
There are four ways for cryptoasset firms to lawfully market to UK consumers:
The FCA has published detailed guidance on the rules for cryptoasset financial promotions, which can be found on its website.
Here are some of the key requirements for cryptoasset financial promotions:
Cryptoasset firms that fail to comply with the FCA’s rules could face a number of sanctions, including fines, imprisonment, or even a ban from operating in the UK.
If you are unsure whether or not your promotions comply with the FCA’s rules, Richardson Lissack can provide expert advice informed by extensive previous experience among our team of FCA enquiries ( including those by its Financial Promotions and Enforcement Taskforce) and at the regulator itself (as a senior lawyer in the Enforcement division).
It is important to note that the FCA’s financial promotions regime does not apply to cryptoassets themselves. However, the FCA has warned that cryptoassets are high-risk investments and that consumers should be prepared to lose all of their money.