FCA Scrutinizes Crypto Firms

The review by the FCA concentrated on several key areas, including the implementation of personalized risk warnings, the enforcement of a 24-hour cooling-off period, proper client categorization, and conducting appropriateness assessments.

This review is the first of its kind for all crypto firms marketing to UK consumers. The FCA recognizes that adapting to these new regulations may present challenges for firms.

Many firms have sought additional clarity on the FCA's expectations regarding these rules. The FCA intends to work collaboratively with the industry to raise standards. The publication of this review is designed to help firms meet their obligations and support consumers in making informed decisions.

The review found some firms demonstrating good practices, which are highlighted in the report. However, there were numerous instances where firms failed to meet the required standards. The FCA has engaged extensively with these firms to address and rectify the issues but notes that further improvements are needed.