According to a letter published by the FCA, all companies offering cryptocurrency products and services in the United Kingdom must bring their advertising campaigns in line with the regulator’s requirements. In early June, the FCA presented regulations on the promotion of cryptocurrencies, and these rules will come into force in October 2023.
The FCA listed four parameters that must be considered when promoting cryptocurrency services. First of all, advertising of digital assets must be done by an authorized person. If the promotion is conducted by an unauthorized performer, it must be approved by an authorized person. FCA-registered companies can advertise crypto-assets. In addition, marketing materials must comply with the provisions of the Financial Services and Markets Act of 2000.
The notice also notes that the “equal risk” principle was considered in developing these guidelines. This means that the regulator treats cryptoassets in the same way as other high-risk investments. Therefore, cryptocurrency companies promoting their services should clearly warn potential users about the possible risks of losing funds.
The FCA’s head of finance and cryptocurrency, Jason Probin, warned that companies that fail to comply with these requirements will be held criminally liable. Violators face up to 2 years in prison and/or an unlimited fine. In addition, these companies will be blacklisted by the agency and their websites, social media accounts or apps may be blocked.
In May, the U.K. Parliament proposed regulating cryptocurrencies not backed by real assets as gambling. This will protect users from investing in assets with high volatility, parliamentarians believe.<br