TechFlow reported, citing TheBlock, that the Financial Conduct Authority (FCA) has written to companies marketing crypto assets in the UK, requiring compliance with its forthcoming financial promotion regime. Non-compliance may result in criminal offenses punishable by up to two years in prison. The rule took effect on October 8 and applies to overseas firms promoting products to UK customers.
The FCA outlined requirements for promoting crypto assets in the UK, specifying four lawful methods:
- the promotion is communicated by an authorized person;
- the promotion is communicated by an unauthorized person but approved by an authorized person;
- the promotion is communicated by a crypto asset firm registered with the FCA;
- the promotion otherwise qualifies for an exemption under the Financial Promotion Order.
Promotions that do not use one of these routes will be considered a violation of Section 21 of the Financial Services and Markets Act 2000 (FSMA), which is a criminal offense punishable by up to two years' imprisonment, unlimited fines, or both.
Add to Favorites
Share to Social Media
