With blockchain technology and cryptocurrencies reaching greater popularity worldwide, financial regulatory bodies have been intensively working to regulate the crypto industry. Some regulators, including the SEC, have taken stricter measures in crypto regulations, while others have adopted a more liberal approach.
In this context, as crypto regulatory work accelerates, there have been many significant developments recently, including the lawsuits the SEC filed against Binance and Coinbase. Meanwhile, the countdown has begun for new crypto regulations to come into effect in the United Kingdom.
Countdown Begins for New Crypto Regulations
The UK’s Financial Conduct Authority (FCA) announced that new crypto regulations, especially introducing new standards for the advertising and marketing activities of crypto companies, will come into effect from October 8. Following the announcement, the FCA issued a letter to domestic and foreign firms marketing crypto assets to UK customers, emphasizing the need to comply with the incoming crypto ad compliance directives.
FCA Crypto Financial Promotions Head Jayson Probin, in a LinkedIn post, underscored the penalties to be imposed if the new regulations are not adhered to, describing the new regulations as a “critical change for the sector”. Moreover, FCA Executive Director Sheldon Mills stated that while it’s up to individuals whether they want to buy crypto, research shows that they make hasty decisions which often prove costly. However, Mills added that the new crypto promotion rules would provide investors with enough time and appropriate information to make calculated decisions.
A letter signed by Victoria McLoughlin, the Head of Digital Assets Supervision, Policy, and Competition of the Market Interventions Department, and Lucy Castledine, Director of Consumer Investments Supervision, Policy, and Competition, stated that crypto firms will need to publish their promotions ‘via an authorized person’.
