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The United Kingdom’s Financial Conduct Authority (FCA) is releasing new guidance for crypto companies on how to properly market digital assets.
In a new press release, the regulator unveils its updated rules for crypto companies on what information they must provide when marketing crypto assets.
“Following a change in legislation, crypto asset promotions aimed at UK consumers now fall under our jurisdiction. We have introduced rules designed to give people a better understanding of what they are investing in and the risks that entails.”
The FCA says the aim of the new regulations is to reduce harm to consumers by giving them full disclosure of the risks associated with trading virtual currencies, which in turn will boost long-term growth for the UK economy should support.
“A central requirement of our financial promotion rules is that financial promotions must be fair, clear and not misleading…
[The FCA] remains focused on our primary objective of reducing consumer harm and clarifying our expectations of businesses, supporting better compliance with relevant regulations and achieving better overall consumer outcomes.
These actions are intended to support long-term economic growth in Britain by reducing the incidence of loss of confidence in financial services caused by customers not fully understanding the risk involved in purchasing crypto assets. Clearer and fairer promotions will enable consumers to be better informed so they can make appropriate decisions tailored to their needs and risk profile.”
As Lucy Castledine, Director of Consumer Investments at the FCA, says:
“While the new rules for companies marketing crypto to UK consumers are in line with existing rules for other high-risk investments, we have worked extensively with the industry and designed this guidance to specifically support crypto companies in complying.
We are constantly seeking industry input to get the rules, their implementation and the support we provide right. This guidance is no exception and we are grateful for all the input we received during the consultation period.”
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