FCA issues 146 alerts in first 24 hours of new crypto marketing regime

Following the coming into force of the new financial promotion rules for cryptoasset service providers (EventID 21585) and the publication of its expectations in this context (EventID 22920), the Financial Conduct Authority has published a first press statement. In it, the regulator informs that on the first day of the new regulatory regime, a total of 146 alerts were issued regarding promotions of cryptoassets. The FCA once again reminds involved entities, including social media platforms, app stores, search engines, domain name registrars, and payment companies, of their duties under the new regime and advises them to take these alerts seriously to protect UK consumers from unlawful cryptoasset promotions.
Since October 8, 2023, firms promoting cryptoassets in the UK must be either authorized themselves or have their marketing approved by an authorized firm before distributing any such financial promotions to clients, unless they are exempt otherwise from the new promotion regime. Promotions must thereby be clear, fair, and not misleading, with prominent risk warnings, and they should not unduly incentivize investments in cryptoassets. The rules apply to all firms promoting cryptoassets to UK customers, regardless of firms‘ locations or the technology they use for promotion.
In this context, the FCA notes that it will take a proportionate approach to enforcement for firms actively cooperating with the FCA to achieve compliance. As a consequence, not all firms will be immediately added to the warning list that was set up by the Authority to warn investors of crypto-asset service providers in violation of the law. However, the regulator will not refrain from taking robust actions, if such is necessary to protect consumers.