đ„đ„đ„ UKâs #FCA releases updated rules for crypto advertisement
FCA Issues New Guidance for Crypto Advertising Compliance
The UK's Financial Conduct Authority (FCA) has released updated guidelines for how crypto companies should advertise their services. Since October 2023, the FCA has been closely monitoring compliance, conducting reviews and site visits.
Compliance and Data Recording:
Crypto companies must log detailed customer journey data, with some firms exceeding these requirements to enhance customer engagement. Leading companies use real-time data to improve onboarding and regularly update their practices at various organizational levels. However, some companies struggle to use this data effectively, lacking clear strategies for improvement.
Due Diligence on Cryptocurrencies:
The FCA stresses the importance of thorough due diligence before promoting #cryptocurrencies. Top-performing firms rigorously follow FCA guidance, developing risk taxonomies and considering factors like consumer protection and financial crime. These companies often promote less than 10% of the cryptocurrencies they review, using a wide range of data sources. In contrast, some firms fail to verify information properly or neglect important factors like environmental, social, and governance (ESG) considerations.
Ongoing Monitoring:
The FCA emphasizes that due diligence should be an ongoing process, with systems in place to monitor market events that could impact the fairness of promotions and the risk profile of the cryptocurrencies.
The FCA's focus is on ensuring that #cryptocompanies not only meet regulatory requirements but also proactively enhance their compliance and customer protection practices.
Source - cryptopolitan.com