FCA Sets Out New Requirements for Crypto Advertising

Ads promoting crypto-assets that violate the rules face unlimited fines and up to two years in prison. This follows from the special section of the new guidance FCA.

They complement the recently enacted Financial Services and Markets Act, affecting regulation of the cryptocurrency sector in the United Kingdom.

«[Section] S21 […] applies even in cases where the message originates abroad, if it is capable of affecting the territory of the country», — the document states.

In The Block they suggested that creators of crypto-asset advertising may need to include a disclaimer.

The updated rules could prove critical for meme-token projects that are based on related memes, the publication notes.

The document also discusses extending S21 to “finfluencers” — financial-influencers.

According to the FCA, posts on Reddit and Telegram may contain inadvertent advertising, and finfluencers — may not realise that they are subject to the S21 restrictions.

Earlier, the FCA warned participants of the crypto industry about the need to comply with the advertising regime, which will come into force on 8 October 2023.

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