According to the 2023-24 annual financial report recently released by the UK Financial Conduct Authority (FCA), more than 87% of cryptocurrency company registration applications have been refused, withdrawn or dismissed. In the report, the FCA detailed new regulations for cryptocurrency marketing and issued warnings to 450 companies for illegally promoting cryptocurrency in early 2024.
New FCA Regulations: Fighting Cryptocurrency Scams
The FCA specifically strengthens consumer protection and combats financial crime related to cryptocurrencies. The annual report states that more than 87% of cryptocurrency registration applications are rejected, withdrawn or dismissed.
The FCA said: "We hope that the cryptocurrency companies that are applying for registration can communicate clearly so that they understand how to correctly and avoid promoting their own company's business in the wrong marketing method. So far, it has helped 44 cryptocurrency companies pass the money laundering prevention registration. regulations.”
(Coinbase Payments was fined US$4.5 million by the British FCA for failing to effectively prevent money laundering)
FCA strengthens cryptocurrency marketing regulations
The FCA has also strengthened new marketing regulations for crypto-assets, which come into effect in early 2024 and are designed to strengthen consumer protection. The regulations include providing a 24-hour buffer period for investing users and classifying cryptocurrencies as "restricted mass market investments."
The report emphasized: “Within three months of the implementation of the regulations, warnings have been issued to 450 companies illegally marketing cryptocurrency assets.”
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The FCA stated that these measures are to ensure that when companies promote cryptocurrencies, they are in a clear and fair manner and exclude any content that may mislead users, so that companies comply with standards to protect users from investing in high-risk products and avoiding being deceived. Below is part of what the FCA has released.
Set a 24-hour buffer period: Help users calmly evaluate their investment decisions before investing.
Product applicability assessment: Provide comprehensive product applicability assessment for different users.
Provide additional maintenance of crypto assets: Provide additional protection measures for crypto asset users.
Financial crime supervision: conduct financial crime fines, credit market research, and anti-money laundering measures.
Legal authorization: Increase market integrity protection to ensure that the company obtains legal authorization.
Take the following figure as an example: FCA canceled the authorization of 1,261 companies in 2023/24, which is 2 times that of 2022/23. More than 87% of these cryptocurrency registration applications were rejected, withdrawn or dismissed by the FCA.
FCA comprehensively combats financial crime and promotes cryptocurrency regulatory standards
The FCA said that since April 2023, it has carried out a number of reviews and implemented new regulations and measures for high-risk investment firms.
The FCA remains committed to combating money laundering crimes, crypto asset fraud and other cases. It also stated that it will continue to cooperate with international institutions to formulate global cryptocurrency regulatory standards. The FCA added: “We continue to play an important role globally in setting international standards in areas such as cryptocurrency, sustainable development and non-bank finance.”
This article UK FCA warns 450 cryptocurrency firms: 87% do not qualify! First appeared in Chain News ABMedia.