FCA crypto promotion guidance was released

Key Points:

• FCA crypto promotion guidance was issued to help crypto firms comply with the new UK crypto asset promotion rules.
• The new guidance includes a new “secondary international competitiveness objective” and addresses the expectations for firms’ domestic conduct.
• The FCA has been supportive of the crypto industry, but some market players have withdrawn from the UK in response to the new regulations.

To assist cryptocurrency companies in adhering to the regulations that went into effect on October 8, the regulator has taken a few steps.

FCA Crypto Promotion Guidance Released Amid Low Compliance

The introduction of rules governing the promotion of crypto assets in the United Kingdom on October 8 has triggered confusion, leading to low compliance. In response, FCA crypto promotion guidance was issued to help firms comply with new UK regulations.

On November 2, the FCA published “finalized non-handbook guidance” to aid crypto firms in adhering to the newly established rules. This release also included the FCA’s response to industry feedback. Lucy Castledine, FCA’s Director of Consumer Investments, stated that this guidance was tailored specifically to support compliance among crypto firms, ensuring alignment with existing rules for other high-risk investments.

FCA Crypto Promotion Guidance to Reflect New International Competitiveness Objective

Despite maintaining a supportive stance toward the crypto industry and extending technical deadlines until January 8, 2024, to accommodate the industry’s transition, some market players have withdrawn from the U.K. in response to the regulations, resulting in subpar compliance. It is important to note that the newly released 32-page guidance does not impose fresh obligations on crypto firms. However, it incorporates a new “secondary international competitiveness objective” while addressing the expectations for firms’ domestic conduct.

The guidance document covers essential aspects of the rules and other legal documents. Additionally, it provides comprehensive responses to questions submitted during the consultation phase. The U.K. took the initiative to implement the Financial Action Task Force’s Travel Rule on September 1 and plans to introduce legislation to regulate stablecoins in Parliament next year.

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