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FCA introduces additional guidance to help crypto firms comply with promotion rule

Following a change in legislation, cryptoassets promotions targeting UK consumers now fall within our remit.

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We have introduced rules that are designed to give people a better understanding of what they are investing in, and the risks involved.

Following a consultation, we have published Guidance to further support crypto firms complying with the new marketing rules. The Guidance also details how authorised firms communicating or approving financial promotions should apply the Consumer Duty to their marketing.

Lucy Castledine, Director of Consumer Investments at the FCA, said:

'While the new rules for firms marketing crypto to UK consumers are aligned with the existing rules for other high-risk investments, we’ve engaged extensively with industry and designed this Guidance to specifically support crypto firms complying.

'We continuously seek industry’s input to get rules, their implementation, and the support we offer right. This Guidance is no exception and we’re grateful for all the input we received during the consultation period.'

The cryptoasset sector and the global regulatory environment are developing at pace, so we will continue to engage with firms and keep our Guidance under review.

To further support firms make necessary improvements to their marketing, we previously published examples of good and poor practice on firms’ preparations for the new financial promotions rules.

We continue to remind people that despite these new rules, cryptoassets remains high-risk and people should be prepared to lose all the money they invest.

Consumers should check the Warning List before making any investment in cryptoassets. The list will help consumers make more informed investment decisions by finding details of unauthorised firms we’re aware of. It also helps consumers understand which firms may be providing or promoting financial services or products in the UK without our permission.

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