According to Cointelegraph, the Financial Conduct Authority (FCA), the United Kingdom's financial markets regulator, has issued a final warning to crypto firms that will soon be subject to new marketing rules. In a letter dated September 21, the FCA expressed concern over the lack of engagement from crypto firms and warned of severe consequences for noncompliance.
The FCA has made efforts to support crypto firms in complying with the rules announced on June 8, even extending the compliance deadline from October 8 to January 8, 2024. However, many unregistered, overseas crypto firms have refused to engage with the FCA, with only 24 out of 150 firms responding to a survey sent by the regulator.
Once the new regime is in force, unauthorized and unregistered crypto businesses will only be able to communicate financial promotions approved by an authorized person or within the scope of certain narrow exemptions. Illegal promotion of crypto assets will become a criminal offense, with violators placed on a warning list and their promotions potentially blocked or removed from websites, social media, and apps. The FCA could seek monetary compensation from violators, and contracts they enter into with UK citizens would not be enforceable. Crypto firms unable to meet the new requirements are expected to take steps to prevent UK consumers from responding to their promotions.
