UK authorities tighten rules on cryptocurrency advertising

The UK’s Financial Conduct Authority (FCA) has published a draft rule on advertising certain cryptoassets. The document envisages banning campaigns that do not assess users’ financial knowledge and experience.

On 18 January, Her Majesty’s Treasury confirmed its intention to extend the remit of the Financial Services and Markets Act to cover regulated cryptoassets.

Under that definition, NFTs are not covered by the proposed rules.

“Consumers should have access to [digital assets] only knowingly and after confirming they have adequate knowledge and experience. […] We propose applying to them the same advertising rules as for other high-risk investments that are classified as ‘restricted investments for the general public’,”—the document states.

Such products may be marketed only if the client meets one of the following statuses:

• a high-net-worth certified investor;
• a certified sophisticated investor;
• a self-certified sophisticated investor;
• a certified ‘restricted’ investor.

In addition, investment firms must assess whether the product matches the consumer’s knowledge and experience.

The FCA invites public comments on the draft rules until 23 March.

Earlier in 2021, the UK’s Advertising Standards Authority began considering the inclusion of a disclaimer in cryptocurrency advertising.

Earlier, Spain’s National Securities Market Commission tightened its rules on cryptocurrency advertising.

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