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UK’s FCA issues October deadline for crypto marketing compliance

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The financial regulator of the UK has issued the latest compliance deadline for crypto companies regarding promotions.

UK's FCA issues October deadline for crypto marketing compliance

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  • UK regulator warned that failure to comply with the latest guidelines is a criminal offense.
  • There were 42 FCA-compliant crypto firms in the UK as of this writing.

The financial regulator of the United Kingdom has issued the latest deadline for crypto companies to comply regarding promotions.

The Financial Conduct Authority (FCA) wrote a letter on 4 July to crypto firms serving UK customers. It warned firms to comply with its latest financial promotions regime or risk criminal charges.

The proposal also includes overseas firms that market their products to UK customers. Failure to comply could result in a criminal offence punishable by up to two years in imprisonment.

The order will be effective from 8 October 2023. The FCA first proposed these guidelines in February this year.

As per the FCA, a financial promotion is any “invitation or inducement to engage in investment activity or to engage in claims management activity that is communicated in the course of business.”

The regulator has outlined four legal routes for promoting crypto assets in the UK. Promotions that do not follow these criteria violate section 21 of the Financial Services and Markets Act 2000 (FSMA). Violation of the FSMA is a crime punishable by up to two years in prison, an infinite fine, or both.

Crypto firms seeking FCA registration go through a rigorous application process. After paying a registration fee, they have to wait for up to three months.

Beginning January 2020, the UK mandated the registration of crypto firms operating in the country with the FCA. As of now, there are 42 FCA-compliant crypto firms in the UK.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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