UK regulator sets start date for crypto-advertising regime

The UK's Financial Conduct Authority (FCA) has warned participants in the crypto industry to comply with the advertising regime, which will take effect on 8 October 2023.

The regulator reminded that offenders may face criminal liability, including fines and imprisonment of up to two years.

For crypto firms, including those based abroad, a promotion will be legal if its sponsor organiser:

• is an FCA-registered market participant;
• has obtained approval from a similar firm;
• has filed an application with the FCA's Department for Money Laundering and Terrorist Financing;
• meets the exemptions provided by the Financial Services and Markets Act.

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

The FCA expects crypto firms to inform consumers clearly and unambiguously about their offers, as well as about the cessation of services.

Earlier in May, authorities warned that, as part of the fight against fraud and cybercrime, cold calls will be banned used in selling financial products, including digital assets.