UK Financial Conduct Authority Warns Crypto Companies Resist Compliance With New Rules

Key Points:

• The UK’s Financial Conduct Authority (FCA) expresses concern over many crypto companies’ lack of cooperation in complying with new regulations.
• Starting on October 8, all crypto asset companies will market to UK consumers.
• The FCA also warns intermediaries, including social media platforms and search engines.

The Financial Conduct Authority (FCA) in the UK has expressed growing concerns about the lack of cooperation from numerous crypto companies, both domestic and overseas, in complying with new regulations set to take effect on October 8.

Crypto Firms Face Regulatory Resistance in the UK

In a letter issued on Thursday, the FCA revealed that many unregistered overseas crypto asset firms that serve UK customers had declined to engage with the regulatory body despite its best efforts. Out of over 150 firms contacted, only 24 responded to a survey, prompting worries about these firms’ readiness to adhere to the impending regulatory changes.

The FCA emphasized the significance of communication from crypto asset firms for UK customers and stressed the importance of full compliance with the new regime. The regulator also extended its expectations to businesses supporting unregistered crypto asset companies, including social media platforms, app stores, search engines, and payment companies, urging them to be vigilant about supporting firms involved in illegal promotions targeting UK consumers.

UK Set to Implement Stricter Rules for Crypto

Starting from October 8, all crypto asset companies marketing to UK consumers, including those based overseas, will be required to adhere to the UK‘s financial promotions regime, which aims to ensure clear, fair, and non-misleading marketing practices.

The FCA additionally mentioned its willingness to consider granting crypto asset companies more time to implement specific changes, such as a 24-hour cooling-off period, based on their industry readiness.

Moreover, the FCA issued a warning to intermediaries, such as social media platforms and search engines, urging them to prevent unregistered crypto asset firms from disseminating illegal financial promotions to UK consumers via their platforms.

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