- 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.
